Silver breakout: The reflation trade of 2016 continues
Related to the reflation theme described in my view "Crude Oil: The Most Important Chart in the World".
Silver is has been consolidating whilst showing relative strength versus gold. Having broken above a downward sloping trendline from the $21.11 high set 4th July, speculators appear to be positioning for further dovishness from the Fed later today.
Assuming a surprise rate hike is not announced today, expect Silver to take out the $21.11 high in the coming days, heading towards 22.52 - 22.88 and further if the reflation theme continues (refer to my related trade idea: "Crude Oil: The Most Important Chart in the World".
Silver is has been consolidating whilst showing relative strength versus gold. Having broken above a downward sloping trendline from the $21.11 high set 4th July, speculators appear to be positioning for further dovishness from the Fed later today.
Assuming a surprise rate hike is not announced today, expect Silver to take out the $21.11 high in the coming days, heading towards 22.52 - 22.88 and further if the reflation theme continues (refer to my related trade idea: "Crude Oil: The Most Important Chart in the World".
