Silver has spent the past week repeatedly knocking its head up against resistance at $70 per ounce. Yesterday it suddenly took off to the upside, rallying 3% over the afternoon and into early evening. That wasn't enough to push it above $70. But as Europe opened this morning it surged over 3% again, taking it to within a few cents of $71 per ounce.
It has pulled back since but remains above $70. This looks like a textbook breakout, and while the daily MACD is elevated, it isn't particularly overbought. It looks as if silver has now caught up with gold as the latter has led the August rally. The question now is whether the precious metals can build on these gains, or require a period of consolidation, or even a significant pullback, to reset momentum.
Source: TN Trader
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