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Silver prices are currently struggling to overcome the $22.00 level, following last week’s big price rejection from the shiny-metals 200-day moving average for the first time since May this year.
While the $20.50 support level has held during the latest down the bounce back higher has been not as convincing. One of the problems is that gold prices are not breaking higher.
Additionally, the US dollar index is not collapsing, and is attempting to hold steady against many majors. We really need to see the buck collapsing in order to support higher silver prices.
Current sentiment metric towards silver show that traders are still bullish towards the price of silver. The ActivTrader market sentiment tool shows that 73 percent of traders are bullish towards silver.
With this one-way sentiment bias it is very bullish for silver price as retail buyers are dropping. Retail have been betting on silver price going up for many years now.
The latest stabilization around the 70 percent sentiment mark is a big bonus for silver as it could suggest that retail is doing the exact opposite of what they should be doing.
Silver short-term Technical Analysis
The short-term technicals for the shiny-metal shows that a huge head and shoulders pattern has been invalidated, and that silver is going to start its next major up move anytime soon.
Looking more closely at the headline break, we could probably expect more upside towards the $25.00 area if silver price holds under $21.20 level.
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Silver Medium-term Technical Analysis
The daily chart shows that silver price is looking promising over the medium-term horizon while they hold above the bottom of its 2-year trading range, located around the $21.50 price level.
The clearly visible range breakout on the daily time frame indicates that we should probably keep a close watch on the metals 200-period moving average, and any attempts above $21.70.
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