Silver futures held steady near the $43 per ounce level in Monday's trading session as many of the US financial markets remained closed for Labor Day. Despite the recent volatility in all of the precious metals, the silver chart has managed to hold onto a very well organized uptrend in the form of a Channel Up chart pattern.
This chart pattern, shown here on the 240-minute time interval, scores high technical marks in both overall Quality and Initial Trend readings. Support and resistance levels are clearly defined at $42.50 and $43.95 respectively, with the current price very near the middle of the channel.
With the rest of the metals holding near their highs for the year, silver remains about $7.00 away from its most recent top. The current uptrend from the low $30's has established a significant recovery for the market so far, and the current Channel Up is likely to continue guiding the price towards a retest of the $50 level as it develops.
A break of support at $42.50 would be needed to flip the short term outlook to bearish. If this occurs it will likely set up a sideways range between the top of the channel and the swing low near $38.80 per ounce.
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