Silver bathes in gold’s glory

A prescient post on Monday when I suggested silver would be relying on gold for a breakaway from the current congestion, and with gold surging higher, this has delivered the much-needed impetus I expected for silver, with the metal clearing all the levels I outlined in the post. These now look set to provide the requisite platform of support, with only marginal price based resistance ahead in the $18.40 per ounce region and denoted with the blue dashed line of the accumulation and distribution indicator.

Note this is not very thick, so is relatively weak, and combined with the volume falling away on the VPOC histogram as we climb higher and move to $18.60 and beyond now appears achievable, something we would not have thought possible last week.

Silver relying on a move from gold

By Anna Coulling

Charts from NinjaTrader and indicators from Quantum Trading