Silver - Three Taps and Out

Resolution of three taps and out is close at hand. The weekly chart illustrates a new trend energy highs in 2009. This technical formation is the equivalent of a magma dome formation within a volcano. The building pressure suggests that the third test of resistance will likely be the last.

Silver ETF (SLV) Weekly:


Yesterday’s intraday reversal filled the 5/4 gap on increasing volume. This is bullish and indicates that up-welling magma is making its way to the surface. In other words, the magma dome is about to collapse, thus, sending price through resistance.

Silver ETF (SLV) Daily:


What is the invisible hand telling us with a breakout of silver? That is the important question.