The silver market saw what had looked like to be a conclusive breakout to the upside last week. It should be noted that this moved was attributed to a decline in the dollar and the negative impacts of global supply. Silver prices may come into pressure as we begin to see more global stimulus headlines with more countries signaling packages for borrowing and debt. The challenge that the bull camp will undergo is going to continue to be a risk of strength in equities and a stronger dollar, which should be noted may be happening very soon. Although the market may be overbought in the short term technically; net spec and etf’s holdings are still net positive.
Chart studies as pointed out have been pointing to an overbought region, but as long as buyers continue to step in on pullbacks this should speed up a move higher when resistance levels are taken out. Moving averages point to a short-term pull back before potentially another leg higher. July silver points of interest include $15.02. If this holds resistance can be tested at $15.79 and $16.12.