Silver is poised to rally again after taking breather

As of August 17, 2026, silver prices have been consolidating in the upper part of the channel following a powerful rally. Visually, the previous four sessions formed a “flag” pattern, with traders buying any dips. This looks more like a pause before further upside than a full-fledged trend reversal.

The Stochastic Oscillator is neutral—far from overbought and oversold territory—confirming that the precious metal is poised to continue its growth. The %K line is now slightly below the %D one, which may be considered a weak bearish signal. However, both of them are almost horizontal, suggesting that the correction momentum, triggered by the flat trend between August 13 and August 16, is running out of steam. If %K crosses above %D in the 50–60 range, it could be a telltale sign of an upcoming rebound.

The Chaikin Oscillator remains in the red, pointing to short-term profit-taking at local peaks. On August 17, however, the indicator reversed upward. If prices hold above $64.5, it could signal that capital is flowing back into the asset. This gains a particular importance given that the On-Balance Volume (OBV) indicator has been climbing with almost no pause for a month—even during periods of sideways movement. What does this mean? Buying volumes continue to rise, despite price stability.

The fundamental picture aligns with this bullish scenario. The likelihood of the Federal Reserve’s (Fed) rate hike in September has recently fallen to 30% due to the weak inflation report and soft retail sales data. That said, Wednesday’s publication of the Federal Open Market Committee (FOMC) meeting minutes, along with Chair Kevin Warsh’s speech at the Jackson Hole symposium in late August, could reinforce expectations of borrowing costs maintaining at the same level and put additional pressure on the dollar.

Meanwhile, the industrial demand stays structurally elevated, with June imports of silver ore to China jumping by 62.5% year-over-year. Interest in the metal continues to be strong in the solar panel and electricity sectors.

Consider the following trading strategy:

Buy silver at the current price of $65.6. Place Take profit at $69.6 and Stop loss at $63.0.

The forecast is valid from August 17 till August 24, 2026.