Price of Silver in 2017 Depends on One Technical Indicator

The price of silver is officially back now that it’s posted its third weekly gain in a row.
After a considerable correction that lasted over four months and included a roughly 25% decline, the silver price bounced back in late December.
If the bottom is actually behind us, it came about a week after the gold price bottom – Dec. 15, the day after the Fed rate hike. And the metal’s been climbing since.
Silver prices haven’t seen the nearly relentless push higher that gold’s experienced, but given silver’s outperformance since bottoming in late 2015, it’s certainly been holding its own.
We’ve seen the metal’s price hit overhead resistance recently, a level we’ll now be watching carefully. Despite that, there are encouraging signs silver is still primed to head higher.
And we’re closely watching one silver price metric that will prove to be the most important in the coming months.
Before we discuss that, here’s why the silver price leaped higher last week…
The Rally in the Price of Silver Last Week (Jan. 9 – Jan. 13)
Silver prices kicked off the week with a modest gain. On Monday, Jan. 9, the metal began at $16.47 when it opened for trading. After a mildly volatile ride, the precious metal closed the day at $16.54 for a 0.4% gain.

This post was published at Wall Street Examiner on January 16, 2017.