What next for silver?

New York (Sept 30)  As reported earlier this week silver broke a very important level on the weekly chart (click here). Now looking to the left on the higher timeframes could be an important exercise. There is a key feature on the monthly chart below. The March 2008 high at $21.31/oz is about to be tested and it was also important in July 2016. Now, it seems like these levels are from a long time ago but they were used to good effect.

In addition to this, the 23.6% Fibonacci retracement level is also very close by. This Fib originates from the high of $49.83/oz down to the low of $11.63/oz from April 2020. The silver market is notorious for respecting Fibonacci levels and on this chart along the 50% area played a key role in the move back down.

Zooming in slightly closer to the weekly chart you can also see that the orange shaded area is also a previous consolidation high. If it does happen to be broken then the green zone closer to $18.50/oz could be next. Lastly remember to watch the psychological round numbers, most notably $20/oz there could be some support there too.

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