Silver Price Will Go Up, But Not Yet

With the silver price straddling the fence around the $19 - $20 level many are wondering if it will resume its upward trajectory, or once again slip back down. Today, Sunshine Profits offered a clue:

Technically, at this time we have no breakout, so the situation remains bearish (even the short-term trend). The downtrend will remain in place here unless silver can increase and hold a breakout above the $20.70 price level (this is a short-term resistance level based on the intra-day highs).

In the recent days we haven't seen such action. Therefore, in our opinion last week’s rally was nothing more than a contra-trend bounce.

And later...

Last week we saw a move to the upside for silver on relatively weak volume. In the recent past, this was also seen before bigger declines. This was the case in early June, late May, early May and also in April. It seems that we have this once again (the volume we saw yesterday was exceptionally tiny).

Summing up, silver moved higher last week and rose on Thursday to its highest level since the June 28 low. Despite this growth, there was no breakout and the downtrend is still valid. We think that the next move for silver will be down and in tune with its recent and current short-term trend. 

Sunshine Profits currently has a silver price target of $15.00 - $17.50. This aligns quite nicely with some of the other targets we have highlighted previously.

• Peter L Brandt: $16.15
• Don Harrold: $17.50
• Chris Marchese: $17.50
• Louise Yamada: $14.00-$15.00

So, don't be surprised if the silver price slips back should it fail to overcome resistance around $20.70. Silver is nothing if not unpredictable, but that's part of what makes it so interesting.