The price consolidation that has been a feature of gold, has also been reflected in the silver market, with silver futures trading in a narrow range, testing $26 per ounce to the downside and $28.50 to the upside, and developing a strong area of price congestion as a result. Both these levels have been clearly defined by Hawkeye with a series of isolated highs and isolated lows with the yellow pivots. The September silver futures contract ended the week at $31.37 per ounce.
The breakout finally arrived two weeks ago, and was in fact signalled early with the Hawkeye Roadkill delivering an aggressive volume entry, followed shortly after by a conservative trend entry, which was also coupled with rising volume on the daily chart, a strong sign that the breakout was valid. The three day trend duly followed suit moving from congestion into bullish momentum, giving added significance to the move higher.
With such a strong series of signal in place, and the Hawkeye heatmap confirming the bullish tone, we can expect to see silver prices continue to climb higher, and a test of the $36 per ounce region, last seen in March this year, now seems likely. With the strong platform of support in place, this is adding further to the bullish outlook for silver in the short to medium term, which reflects the picture for gold.
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