The precious metals market is getting very interested. Last week, we wrote that Gold Is Just 8 Pct Away From A New Bull Market. This article is focused on the silver price; we explain why March 2017 will be such an important month for silver.
As seen on the silver price chart, silver has a particularly interesting chart setup at this point. Last summer, Silver’s Price Rally Stalled Exactly At Its 2008 Highs, around $21. That was a major price level. Silver fell to test its bear channel, but rallied higher in the last 8 weeks.
In January and February, the price of silver moved between support and resistance, in a parallel channel, as seen on the chart.
Right now, silver has arrived at a very important inflection point where two leading trend lines ‘meet’. This is, by far, one of the most important price levels for silver.
The pattern that is seen on silver’s price chart is meaningful. At this point, silver is the strongest of the two precious metals. The key question, however, is whether Silver is the Leading Indicator or Gold or the other way around.
Although silver has a stronger chart setup, we still believe in the possibility that gold will lead silver higher or lower. Gold has a track record to lead in both directions. However, once a trend is ongoing, silver is the more volatile metal that tends to move stronger. As precious metals are still in a bear market, we believe that gold is leading.
March 2017 will be a very important month for the silver market. Silver investors pay close attention to the $18.50 level. If that is broken to the upside, the real test is the $21 level. However, wath closely these two levels in gold: $1260 and $1350.
As long as there is no upside breakout in silver, we remain bearish and stick to our A Silver Price Forecast For 2017.