The markets continue to react to signs that COVID-19 might be plateauing in the world, but the ripple effect has and will continue to hurt the economy. The North American session will begin with the weekly initial jobless claims which continue to be on the higher end of estimates. While the silver market may not be showing as impressive gains as gold, the charts are positive and the possibility to see silver trade above $16.00 seems to be something we can’t rule out. The action by U.S. lawmakers to push for additional loans and monetary stimulus has helped the bull case, it should also be noted that silver ETFs added an estimated 8.1 million ounces of holdings bringing net purchases just shy of 50 million ounces.
Silver has been on a bullish uptrend since hitting its low of 11.65 in March. We saw initial resistance at $14.74, which caused Silver to trade in a tight range between $14.00 and $14.74 before breaking out to the upside as selling pressure relieved and buying pressure commenced. A pullback to $14.75 maybe healthy and would also allow people to use this a “load zone” otherwise if we can break $16.00 we could see a leg higher without a pullback.