Silver rate moves in a downward trend in close correlation to gold rate. This is evident not only in the direction of the trend. Also the time of formation of individual valleys and peaks of this pair is closely correlated (marked with ellipses and the vertical lines in the image ). In the Forex market, such correlation can be observed frequently. In the attached charts (Comparative Analysis of Gold / Silver) you can see it clearly. In the
previous analysis assuming growth I presented scenario of the expected gold rate movement . Upward movement become a reality, and as you can see the silver price in this case retains the full correlation.
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| Comparative Analysis of Gold / Silver charts
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Analyzing the current situation, I assume that in the near future silver will remain under the influence of growth sentiment. In the chart below I present a suggested scenario.
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| Silver rate - analysis and trade recommendation chart
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The rate hit the level of 29.75. Now the growth should slow down a little. Downward correction is also possible, but the rate should remain over 28.75. I expect another growth soon. This movement should rise to 30.00. There we can expect some resistance, however, it should be broken, opening the way for further growth. The target for this movement is the level of 31.00.
Trade recommendation:
Buy after closing above 30.00
Take profit levels:
Target 1: 31.00
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