Technical Look at Silver

Silver has surged above the 2008 and cup & handle resistance. The longer price hangs above this zone, the greater motivation for technical trading funds to ‘chase’ the breakout. While trend energy is growing, it has yet to exceed the 2009 highs. It is important to note that while trend energy has breached the 2008 highs into 2009, price has remained below the all-time highs. This positive divergence of trend energy has implied a pending breakout for months.

Paper Silver ETF (SLV):