We still favor higher during the next two months for precious metals, although we acknowledge that the choppy action of recent months has made the trade difficult for bulls. The difficulty of getting price to move out of its range is consistent with the idea that the move toward the next cyclical high is a corrective one.
Silver appears to be establishing the lower edge of a channel as a support area for the next advance. As we have shown on the weekly chart, likely targets for upward wave (c) of B are in the vicinity of $19.60 to $20.80. Depending on time, that area could also represent a test of the upper range of the channel.
Silver also has been contending with geometric resistance on a daily chart, but there are support levels nearby that we believe should hold.
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