- Two weeks ago I looked at breakout potential in Silver, and the following Monday saw Silver prices set a fresh seven-year-high.
- That breakout couldn’t hold at the $30 level, however, and prices quickly pulled back. This exposes a possible double top formation that could prelude a deeper reversal; but there’s also a bullish case to be made as looked at below.
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It’s been a wild two-week run in Silver prices and there’s a number of reasons for it. But let’s first start with the ‘what.’ Silver prices jumped to begin last week’s trade, temporarily testing above the $30 level, which helps to mark a near eight-year-high in the precious metal.
That strength didn’t last for long, however, and prices quickly pushed back down to the $26.00 handle; finally firming a low around last Thursday after which buyers have come back into the equation. Friday was especially beneficial to bulls, as a rocky NFP print helped to bring back USD-weakness and this helped to contribute to that topside move in Silver.
So far this week, bulls have continued to push, re-claiming ground above the $27 handle as risk assets have been similarly strong as evidenced by another fresh all-time-high in both the S&P 500 and Bitcoin. I started looking into Silver a couple of weeks ago as prices had just begun to re-engage with the $27 handle. I highlighted the breakout potential here, with emphasis on the psychological level of $30 sitting above price action. But, now that that breakout has taken place and buyers were unable to continue the move – is there hope for bulls that Silver prices might finally leave that $30 level behind as fresh highs come into the picture?
SILVER DAILY PRICE CHART
