Looking at the Covid-19 daily infection chart, the present low is a higher low than before, suggesting a new surge in global cases will follow. Global economic data is mixed and does not support a strong economy as priced by financial markets. Inflationary pressures continue to rise gradually, adding bullish momentum to precious metals like gold and silver. Both were caught in a sell-off as markets discount the brewing risks, capable of igniting a more significant sell-off as spring arrives.
The forecast for silver remains bullish after this safe-haven asset recovered from a breakout below its Ichimoku Kinko Hyo Cloud and advanced into it. While the Kijun-sen entered a sideways trend, the Tenkan-sen remains in a downtrend, pointing to more choppy trading ahead with a bullish bias. The CCI already accelerated out of extreme overbought territory and has more upside potential.
Should price action for Silver remain inside the or breakout above the 25.950 to 26.550 zone the following trade set-up is recommended:
Should price action for Silver breakdown below 25.950 the following trade set-up is recommended: