Silver is potentially set up for a consolidation phase, with bullish bias due to strong support at the $18 to $20 zone. Fundamentally, delayed US tapering and weakness in risk assets would also contribute to strength of metals.
Conversely, if the situation changes next year, there could be a downwards breakout instead. A break of $18 would send prices spiraling down to test 17.70, and 15.95, the next lines of defense.
However, if the channel consolidation does play out, silver bulls can look forward to an almost guaranteed run to 24.80 once, and if, the downward channel breaks upwards. 26.70 would then be the next target before major resistance stops the bullrush.
Conversely, if the situation changes next year, there could be a downwards breakout instead. A break of $18 would send prices spiraling down to test 17.70, and 15.95, the next lines of defense.
However, if the channel consolidation does play out, silver bulls can look forward to an almost guaranteed run to 24.80 once, and if, the downward channel breaks upwards. 26.70 would then be the next target before major resistance stops the bullrush.