Silver futures rallied alongside the rest of the precious metals to move within striking distance of the $35 per ounce level by the close of the session. The broader strength in precious metals helped to underpin the technical strength seen on the silver chart. Autochartist has identified key resistance near the current price, in the form of the Ascending Wedge chart pattern show here. The pattern is shown on the 240-minute candlestick chart with the major low near $26 per ounce providing the starting point for rising trend line support. Resistance was first established at the beginning of December and then again just last week near $34 per ounce. This $9 per ounce range between the top and bottom of the Ascending Triangle will have traders watching closely for either an upside breakout or a key failure of support with an ensuing sell-off.
A move above $35.00 in the near term is needed in order to generate a buy signal and forecast for higher prices from here. If this occurs it may be seen as a strongly bullish acceleration of the rising trend. Profit-taking here would likewise send the market lower and threaten to break the trend line near $32.80 to generate a sell signal.
DISCLAIMER: The Autochartist service includes chart pattern identification in respect of foreign currencies, commodities, equities and stocks. There are potential risks relating to investing and trading. You must be aware of such risks and familiarize yourself in regard to such risks and to seek independent advice relating thereto. You should not trade with money that you cannot afford to lose .The Autochartist service and its content should not be construed as a solicitation to invest and/or trade. You should seek independent advice in this regard. Past performance is not indicative of future performance. No representation is being made that any results discussed within the service and its related media content will be achieved. All opinions, news, research, analyses, prices or other information is provided as general market commentary and not as investment advice. Autochartist, MDIO Software, their members, shareholders, employees, agents, representatives and resellers do not warrant the completeness, accuracy or timeliness of the information supplied, and they shall not be liable for any loss or damages, consequential or otherwise, which may arise from the use or reliance of the Autochartist service and its content. This e-mail may contain information that is confidential. If you are not the intended recipient, you must not distribute, copy, circulate or in any other way use or rely on the information contained within the entirety of this email. Please delete the e-mail and any attachments and notify us immediately.