An exciting week ahead for silver investors and traders, as the industrial metal signed off a positive week on Friday, and in early trading continues the bullish sentiment which threatens to test the $20 per ounce area and finally break away from the extended congestion phase which has been in place for almost a year. Whilst the current upwards move has certainly been helped by gold, silver has found its own support with a solid rise in volume last week to support the break away from the volume point of control at $18.20 per ounce and more importantly to breach resistance at $18.60 per ounce and denoted with the blue dashed line of the accumulation and distribution indicator which is now offering excellent support. The indicator thickens the line according to the number of times it has been tested and held and so gives an instant visual picture of the strength of these regions.
At the time of writing silver is trading at $19.55 per ounce and peeking into the low volume node of the volume point of control histogram which extends through to $20.50 per ounce which is an excellent signal, as we can expect to see the metal move through this region with ease as a result. So after the dire price action of March, reasons to be cheerful for silver investors as we are set to see the metal move strongly into the roaring twenties and beyond!
By Anna Coulling
Charts from NinjaTrader and indicators from Quantum Trading
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