Wednesday, October 7, 2015

Has silver's long awaited bull started?

Recently silver had a quick strong upmove and managed to break above resistance at 15.5. Despite the recent upmove we remain neutral on silver.It seems like it is forming a rising channel (neutral-bullish scenario) or a rising wedge (bearish scenario). Currently there is an important rising support line (the lower line of the channel/wedge) which is very critical. As long as silver stays above that line a significant bull move is on the cards. A break below that line can signal the continuation of the long-term downtrend for silver.
1.Neutral scenario(60%)

2.Bullish scenario (30%)

3.Bearish scenario (10%)
To summarize:(For the next 1-2 weeks) A sustained move above 16.00 will be very bullish for silver.We will remain neutral between 16.00-14.65. A quick move below 14.65-14.75 will turn our view on silver bearish again