The steady climb continues in the precious metals complex, as mounting pressure from the European debt crisis and extreme volatility in the broader markets sends investors moving back towards safe haven assets. The recent resurgence is making for technical favorable chart developments on both short term and long term timeframes. Autochartist has been tracking the upward movement in silver with the identification of a convincing breakout late in last week's trading.
Silver had been in a lateral drift as the precious metals sought a bottom amidst the turbulence. After pushing to the 2011 highs near $50 per ounce, the ensuing correction brought the price back briefly below the $30 level. The sideways movement is well off the lows and about one-third of the distance between these two price points, suggesting a consolidation by traders with equally balanced upside and downside near-term risk in a perceived value area.

This price action translates into a narrow Triangle chart pattern, illustrated here on the Autochartist 240-minute time interval from its inception point on October 31st. While the range of the pattern contracted quickly as the apex approached, the internal readings were solid and consistent with an overall Quality of 7 bars.

Heavy buying after a successful retest of support drawn at the $33.50 per ounce level triggered a technical breakout accompanied by a maximum momentum reading of 10 bars. Despite a pullback and retest of the breakout level, the price has yet to pull back below the established support. This portends a possible resumption of the rally towards the higher forecast for the week ahead.

The projected price generated by Autochartist calls for a minimum move to $35.78 per ounce, with the upper end of the range ending at $37.47 per ounce. The completion of this breakout would confirm the uptrend and establish a base for another test of the key $40 level.
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