Silver’s rally from 18.13 resumes this week and breaks above 20 handle. In the bigger picture, 18.13 is tentatively seen as a medium term bottom, made after hitting 100% projection of 30.07 to 21.41 from 26.93 at 18.27.
For now further rally is expected as long as 19.54 holds. The key resistance zone lies around 22.50, which is close to 55 week EMA (now at 22.61), and 38.2% retracement of 30.07 to 18.13 at 22.69. Reaction from there will reveal whether rise from 18.13 is a corrective rebound, or the start of an up trend (the preferred case).
Gold is struggling in range for now, but further rally is expected as long as 1754.14 support holds. Break of 1794.68 will resume the rise from 1680.83 low. Key resistance level lies in 38.2% retracement of 2070.06 to 1680.83, which is close to 55 week EMA (now at 1826.89). Sustained break there will solidify the case that whole corrective pattern from 2074.84 has completed with three waves to 1680.83.
