Silver prices are bullish above the February 2 low of $15.11, and I anticipate that trend following traders are likely to use a pullback to the $15.48 mark (yesterdays’ breakout level) as an opportunity to add to their bullish exposure.

We note that silver prices have been rallying strongly over the last two weeks, from a low of $14.18 to $15.97. This makes the trend overbought, however, the last few days prove that it’s far better to stick to the trend rather than trying to fight it.

A bounce from $15.48 may mark a resumption of the bullish trend and take price to the current weekly high of $15.97. The next target beyond the $15.97 high, is the October 15 2015 high of $16.23.

Silver Is Trading At A Discount To Gold

With gold prices trading above $1440, it suggests that silver should be trading at $16.51 given its correlation to gold.

US Retail Sales and University of Michigan Consumer Sentiment are on tap this afternoon, with better than expected data potentially triggering lower prices as demand for the USD increases and the need for safe haven assets like silver diminishes. Soft data, may on the other hand trigger higher silver prices, in line with the prevailing technical trend.

Silver Prices | FXCM: XAG/USD