Silver Futures Chart 5 Feb 2013

March silver futures followed much the same pattern as gold futures yesterday, closing the session with a narrow spread down candle and ending at $31.71, having touched an intra day high of $31.92.

On the daily silver chart, silver futures are continuing to consolidate into a strong pennant pattern centred around the $31.70 per ounce level.  This pattern is  further reinforced by a series of isolated pivot highs and pivot lows which stretch between December 2012 and January 2013 with the most recent posted on 31 January.

With a strong platform of support now in place in the $30 per ounce level and with a series of higher lows on the daily candles, silver now appears to be preparing for a breakout to the upside.  Should  this occur (and the price action is highly suggestive) then the initial target is the resistance at $32.50 but thereafter silver will require sustained momentum to move back towards $34.50 or beyond.

By Anna Coulling

Come and join my live training room and discover why in today’s complex markets price behaviour holds the key to your trading success.

Charts courtesy of Hawkeyetraders