Silver prices are currently breaking higher as precious metals soar due to a major sell-off in the US dollar currency, which last week suffered its biggest sell-off in nearly a decade.
The shiny-metal is currently tackling the $22.00 level, marking a huge price recovery from the $17.70 level earlier this summer whereby silver prices dumped to a 2-year price low.
Technically silver prices have just invalidated a bearish price pattern which may suggest that silver price could be about to explode higher by a further $5.00 to the upside.
The idea that the Fed is starting to slow in the rate hike cycle while inflation continues to roar has ignited a serious price bid under the price of gold, copper, and of course silver of the past week.
Current sentiment metric towards silver show that traders are turning less bullish towards the price of silver. The ActivTrader market sentiment tool shows that 71 percent of traders are bullish towards silver.
With this one-way sentiment bias it is very bullish for silver price as retail buyers are dropping. Retail have been betting on silver price going up for many years now.
The latest drop in sentiment is a big bonus for silver as it could suggest that retail is doing the exact opposite of what they should be doing. Bettering against silver when it’s about to breakout.
Silver short-term Technical Analysis
The short-term technicals for the shiny-metal shows that a huge head and shoulders pattern has been invalidated, and that silver is going to start its next major up move anytime soon.
Looking more closely at the headline break, we could probably expect more upside towards the $25.00 area if silver price holds under $21.50 level.
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Silver Medium-term Technical Analysis
The daily chart shows that silver price is looking promising over the medium-term horizon while they hold above the bottom of its 2-year trading range, located around the $21.50 price level.
The clearly visible range breakout on the daily time frame indicates that we should probably expect more upside in the medium-term if price holds above $21.50.
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