A quick update for silver price. This is the weekly chart for silver. There are many period for technical analysis ranging from 1 minute, 5 minutes, 10 minutes, 15 minutes, 30 minutes, 1 hour, 2 hours, 4 hours, 8 hours, daily, weekly, monthly. So, which one should you use?
Personally, I would ignore any chart between 1 minute to 8 hours because they consist of too many “noises“, changes too rapidly and confuses the trend. In fact, as long-term and value investors we do not have all day to monitor silver chart. We want to look at something fundamentally strong which is the weekly chart.
In this chart, silver price is meeting a strong resistance at $36 and strong support at $26. Although we have broken from the flag formation (click to learn more about flag formation), silver price is still trading within the range of $26 to $36.
So what does it mean? There are 2 possibilities outcome for this pattern.
First possibility (Direction A, refer chart above), silver price will be finally breaking out from the strong resistance. It will shot all the way up exceeding $40 by the end of the year.
Second possibility (Direction B, refer chart above) silver price movement is again blocked by the strong resistance at $36. Silver price will continue to trade within $26 – $36 range until the next attempt to break the resistance.
I discuss silver price forecast in my membership site in detail. If you are interested learning silver price movement, I recommend you to join my private silver investor membership site to receive frequent updates. In fact, this update is given to my members way earlier before it hit the public. See you inside!