Silver is currently trading at $26.49. The US and global markets continue to recover stead pace. However, with the rise in commodity prices and signs of inflation, silver bears would likely be put on the defensive. The weekly chart below shows range-bound price action. In my view, you will see silver above $30 before you see it below $20. Another interesting fact is that the dollar has been relatively strong, yet silver has not given much ground to the downside. In my view, any pullback will be bought rather than sold. I’m not sure if the market is convinced of the dollar strength, I’ll add more notes about that later.

Silver Weekly Chart
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Eli Tesfaye

Senior Market Strategist

Eli started his career in the futures and options market while he was in graduate school finishing up his MBA in 2003. Eli specializes in Automatic trading strategies and systematic options trading strategies in futures market. He has been Series 3 license holder since 2005. Eli's is an avid reader, runner, and yoga practitioner.

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