Silver futures benefitted from last week's rally in the precious metals sector, pushing above $33.00 per ounce briefly after breaching key level resistance. The Autochartist Key Level indicator has identified the $32.60 per ounce price as the key short term level for the market to hold if the upside momentum is to continue into next week.
On a longer term timeframe, silver's rise above the key level resistance at $32.60 per ounce completed a successful retest of major resistance at the $33.80 level. This swing high confirmed the development of a Channel Up chart pattern, identified here on the Autochartist 240-minute time interval.

Once the retest occurred, the price fell back and settled Friday at the short term key level, which will now act as minor support. A move below this level would set up a potential sell-off to the bottom of the Channel Up pattern. This support level currently rests at the $31.40 per ounce level as indicated by the chart analysis pictured here.

The range inside the channel of more than $2.00 per ounce makes this pattern a good candidate for swing trading as the price gyrates inside of the zone while the pattern fully develops. Selling failures at the key resistance levels while buying retracements from the well-established support can allow for short term entry and exits as traders await a long-term directional trend to reassert itself.

Overall, a move above the Channel Up pattern's resistance with follow-through above $34.00 per ounce would signal a bullish upside breakout, and may bring sustained buying interest back into the market for an eventual retest of the $40 level. Conversely, acceleration of the pullback from the channel resistance could result in a breach of the $31.40 support. This would be a signal for a downside breakout and a trend lower on the horizon.

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