Silver price actions consolidation pattern may produce 25% gains
Last week, silver’s sideway trading continued and it has not found a commitment for a breakout yet. More consolidative trading is likely in the near term.
Silver for September delivery rose 81 cents, or 3%, to settle at $27.80 an ounce. Silver advanced 1.1% on the week.
Next week, on the downside, a clear break of 26.07 will confirm resumption of whole decline from 37.48, and should target next long term fibo mark at 24.22.
On the upside, a silver price break above 28.5 will trigger another rally to key resistance of around 29.8.
In the long term, silver price actions from 26.15 is seen as a consolidation pattern. Such consolidation may end at around 37.5. A fall from 37.5 may extend to 61.8% fibo retracement of 8.4 to 49.8 at 24.2 and below. A break of 29.8 suggests one more rising leg before consolidation from 26.15 ends.
The big question remains on whether 49.82 is a medium term or long term top. The current development favors the latter. A price actions from 49.82 may just be developing into a sideway pattern.