Are Silver Bulls Ready For The Next Upleg?

The Commodity Trader’s view - The recovery in Silver reached a high in February, after which point the market entered a consolidation phase. Recently an interesting support level was reached and it may not take much on the upside to trigger another upleg.

• MONTHLY CHART – CONTINUATION: The long term chart shows how effective was support from a major 76.4% level (and highs from 2004/2005 too). On this chart note potential resistance offered by the 15.00 area – the next hurdle still needing to be overcome.
• DAILY CHART – JUL-09: In the Commodity Trading Guide we have been watching the key support coming from the 50% level and 07-Jan high, at 11.73/61. So far this has provided good support, and we had said that a good close above the falling resistance line would be a bullish sign now. This has not yet happened, and now we will take a close above the 13.25 27-Apr high (which pierced the resistance line intraday) as our signal. This would initially target a retest of the 14.64 Feb high, ahead of higher retracements which we will look at in upcoming Guides.

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