 Good morning, and welcome to the chart of the week video with me David Madden. Today's date is Friday the 29th of January 2021 and the time is 10.59 GMT and this week's chart of the week is silver. If you take a look at the price action here, we can see that the broad trend of the last few months has been to the upside. Today it hit its highest level since Friday the 8th of January, so we've hit a multi-week high on the silver market. Taking a look at the MACD indicator, MACD histogram, we can see that momentum has swung from negative to positive. The market's moving higher, there's a switch in sentiment from negative to positive, so for the time being the momentum appears to be with bulls. Now if we take a look at the price action in the last few weeks, we can see that significant sell-off from early January into the middle of the month. This kind of here which I've circled appears to be and looks ever-increasingly to be a hammer formation. The market moves higher in the back of it, it drifted a bit lower on a bit of a pullback, it found support nicely at the 100-day moving average, which is the yellow line there in a 24 spot 83 and it's moved higher again. So it seems to me that the kind of weakness that we've seen from early January into mid-January seems to have been shaken off and we've nearly recouped all of those losses. If you continue to push on higher from here, you could be like retesting the early January highs in a 27 spot 92 and the move beyond that could take us back up towards the highs of September 2020 in a 28 spot 90 and if you go beyond that, we're going to be looking at heading up towards $30, which would be the next big number to keep an eye on. If you're going to be trading silver, keep an eye on what's going on with gold. Two markets are reasonably well correlated, they don't always move in tandem, but they often do. Now, similarly with gold, it had a multi-month high in January, had an aggressive sell-off in the middle of the month. Notice how the shape of the candle that we're seeing here, notice the hammer formation on the gold chart, and it's quite similar to the formation we saw on the same day in silver and what we saw here was it could move higher, but it has been drifting a bit lower ever so slightly. So it's giving back some of its gains. With that, this could be a pivot point. Silver continues to move higher and build on its gains, whereas gold has given up some of those gains. So not to say that if gold continues to move lower, silver will not move higher, but you're giving more confidence that silver is going to continue to move higher if you were to see gold trade higher too because of the kind of correlation between those two assets. So if you are going to be trading silver, keep an eye on what's going on with gold. If you're seeing gold breaking lower, that could cast some doubt over the possible continued rally in the silver market. Whereas if gold moves on higher from here, it takes out its recent highs and it's setting multi-week highs in gold, you can get any more confidence that we're going to see a continuation bullish move in silver. And then also, what it's also worth pointing out, because the gold market and to an extent silver often get moved around and influenced by what goes on with the US dollar, let's take a look at what's going on with the dollar. If you look under the products, we can see here at CMT markets, excuse me, one of the selection or categories of products that we offer is 4x indices, which is the same principle as the stock market index but it's a basket of currencies. So if we take a look at the CMC USD index, which is a slightly different weighting from the well-known US dollar index, we can see here at the greenback has gone through an interesting move in the last few weeks. It's been a strong downward trend for the last few months and it's the lowest level in over two years at the beginning of January, but since then it's been moving higher. Now, is this going to be a case of we're going to see a move to the upside because it recruits some of the loss and then it turns over on itself and moves lower yet again? Or is it going to be a case that it's actually going to move higher and then it's going to build on those gains and actually look to do a more of a large turnaround? We can see now that the CMC USD index is going to run into resistance at this blue line here, the fifth of the moving average. We haven't tested that metric since November. If we continue to remain below it, it's likely that the broader downward trend is going to remain intact. Further weakness in the US dollar from here could prop up gold and potentially silver, but if you do have a share break higher in the US dollar index, if you take out the US dollar, the CMC USD index, if you have a break higher in the dollar, if you take out the late December highs and we head up towards the early December highs, that could be a sign that the dollar is turning around. That's likely to put pressure on gold and also likely to put pressure on silver. So we need to keep an eye out for that. Let's take a look at some possible areas of support in the silver market because we're talking about the moves to the upside. If you do move lower in silver, you could be retesting the 100 of moving average at 24.83 the yellow line here. A break below that could take us back down towards the 24 mark, which is basically the lows of mid-January. If you go below that, then we'd be more concerned for the recent upward trend and that could take us back down towards the lows seen in late November. If you are going to be trading silver, gold, or the US dollar today, it's worth keeping in mind that we do have some important economic data out from the US in a few hours. Our economic calendar here can be found, third option down under market calendar. The numbers are coming out at 1330 GMT is the US personal income, US personal spending, and the US core PCE reading, all of which are very important. On the back of it, we could see some aggressive moves in the US dollar and therefore moves in gold and silver. That's all from this video. Thank you for listening and have a good weekend.