Silver Surge Continues to Fresh ATH After 75 Support

Silver Surge Continues

While the 82.67 level was a roadblock for bulls last week, helping Silver futures to hold a high while giving the appearance of a possible double top formation, buyers have started this week by making a statement, driving the metal to another fresh all-time-high and this time, gold has moved along with it.

Behind the source of the move as another ramping up in the standoff between President Trump and Jerome Powell, with the weekend announcement that the Department of Justice will investigate possible criminal charges behind Powell’s testimony from last summer regarding the buildout of the Federal Reserve’s renovation project. Powell wasted no time as he issued a statement shortly after the announcement and this has produced a large move in many markets, with USD weakness showing prominently to go along with another breakout in metals.

In Silver futures, prices have broken out to another fresh all-time-high and this negates a possible double top formation that began building last week when buyers failed to re-test the prior December high of 82.67. That failed run at highs led to a pullback and the 75-handle held the low on Thursday and Friday, with the week ending after another test of the 80-handle.

Silver Futures Daily Price Chart

Chart prepared by James Stanley; data derived from Tradingview

Silver Moving Forward

At this point bulls remain in firm control and there’s no sign of that yet letting up. As looked at last week, for a double top to trigger, prices need to break the neckline and for that setup, the neckline was right around the 70-handle which of course did not come to fruition. But perhaps more impressive is how buyers have responded to the pullback from late last week, as there’s been a consistent stream of higher-highs that’s led to that topside breakout and fresh ATH.

At this point the closes spot for possible support is that prior swing-high at 82.67, and below that the 79.60-80 level is major spot. A failure from buyers to hold there wouldn’t necessarily denote big picture failure, as 77.73 and the zone from 75-75.50 could also function as higher-low supports.

Silver Futures Four-Hour Chart

Chart prepared by James Stanley; data derived from Tradingview

--- written by James Stanley, Senior Market Analyst, Global Macro

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