July Silver crossed to the bullish side of a downtrending Gann angle late last week, setting up the market for a potential rally. In addition, it has regained a key retracement level, indicating a possible shift in investor sentiment. Because of this activity, July Silver futures is a market to watch.
The main range is 26.50 to 37.60 with a key retracement zone at 32.05 to 30.74. The downtrending Gann angle from the 37.60 top is at 30.72 today. Crossing the Gann angle and regaining the 61.8% level are strong signs that shorts may be weakening and that the buying is getting stronger. Its current price level may be attractive to value-based traders, but trend traders may have to wait a little longer before getting upside confirmation.
The daily main trend is down. It will change up when the swing top at 33.36 is crossed. Although that price is a long way off, the market could form a small “W” this week which will lower the swing chart breakout price. The development of the next rally may require a little more patience, but it could be worth it if the market reaches its upside objectives. Those will be posted later in the week.
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