Hi all! Time for an update in the wake of "Brexit". Can i say "Cha-Ching"?
In our earlier post, our conclusion was to take a shot and go long because there were more upside factors vs downside; we gave a technical target of $18. It's almost there! At the time of the last report, spot silver was mid $16.
We still think there are more upside factors than downside, and silver has recently done a technical breakout.
1) Quantitative Targets imply an overall target of around $20 especially if other asset classes hold to their prices.
Assuming we eventually get a mean-reversion, we still have about a 15% more upside from here, but no visibility on how it gets there.
2) Technical target implies a move to $19.
That recent breakout from the SLV implies a further move to $19. However, silver is getting extended, a small pullback is possible before the next move to $19. This next move could be the end of the major move in SLV for this year.
Till next time, cheers.