There is a growing sense that Silver is currently a strong potential investment. It is likely to hit resistance in the near future before entering a new upside price leg.
Both silver and gold have shown impressive rallies in price over recent weeks, and this could be the beginning of a more substantial price trend.
Identifying Momentum Alongside Historical Data
Expert analysis has identified a resistance level for silver since it has broken out of its falling channel. The resistance zone it currently sits in has been a fundamental price channel in the past, but the momentum, cycle analysis and Fibonacci all point to an upward move in the form of advancement legs.
The first of these legs is close to exhaustion, and a slight price rotation downwards is likely to happen next, so when this happens the technical trader will have a good opportunity to acquire silver at a good price. The window may be small, as the next upward leg is likely to happen quickly.
It would be a safe estimate to predict that the upside leg for silver should come in at between +6% and +10% to a resistance zone. Upon reaching this level, and once prices consolidate to create another momentum base, a further upside leg should drive the price higher still before stalling for a second time.
The Bigger Picture
Significant moves are being observed not just in metals stocks, but all over the globe with some super cycles showing the potential to last years. There are various experts out there who offer charts and analysis to guide about this prediction – a trader by the name of Brad Matheny is one to watch.
Experts in trading and technical analysis have seen a number of bull/bear cycles in the market over the years, and by keeping a finger on the pulse of key markets and identifying important turning points both for those short-term swings and long-term opportunities, there is the potential for significant profits under the right guidance.
Silver is showing the potential to be one of the best trades and investments in current markets, and you should definitely have an eye on the momentum for short-term opportunities to profit.