Silver bottoms with a double bottom pattern
22 December 2021
The bullion advanced 0.5% today and traded above 22.50 USD ahead of the US session as the USD has fallen notably today.
At the last check, the EURUSD pair was back above 1.13, looking ready to accelerate higher as it seems the euro has found its bottom in this bearish cycle.
Moments ago, the revision of the US Q3 GDP was released, and it printed 2.3%, higher than both the previous estimate of 2.1% and the consensus forecast of 2.1%. GDP rose at a 6.7% annualized rate in Q2, so a slowdown but not as bad as previously expected.
From other news, the UK government's scientific advisors are reportedly ready to officially declare that those who become infected with the omicron strain are less likely to become severely ill. The same observations came from South Africa, where the Omicron variant first appeared.
For silver, the September lows at 21.50 USD were defended during the recent sell-off, and it looks like an excellent double bottom pattern, reinforced by the MACD indicator, which just sent a bullish signal.
The next target could be 23.05 USD, followed by the 50-day moving average at 23.50 USD (the purple line). As long as the metal trades above 22.50 USD, the short-term outlook seems bullish, while staying above 21.50 USD is also looking positive from the medium-term perspective.