Silver futures launched higher in Monday's trading session to eclipse the $32.00 per ounce level once again. The turn-around erased much of the losses experienced last week as the precious metals sector followed the stock market lower. Monday's move places the price in close proximity to the resistance identified on the Autochartist Key Level indicator.
This key level at $32.60 per ounce has served as a major cross-over point to identify short-term strength or weakness on the chart. With the move higher representing an approach to the level once again, traders will be watching for a break above the level to add bullish weight to the chart analysis. If the current rally does indeed follow through, it would leave a tight reversal formation on the longer term chart and invite a move towards the previous swing highs near the $35.00 per ounce level.
Conversely, a retest of the $32.60 key level followed by a pullback would suggest another failed retest. This would reaffirm the strength of the resistance and encourage downside momentum to accelerate on another move towards the $30 per ounce handle in the near term.
For further information on this and other Autochartist products, visit our website at www.autochartist.com