Silver Break-Out! The Next Level to Watch?We come back to the silver market where our previous article indicated a potential breakout. Now that we have seen a decisive break and close above previous major resistance, we have new hurdles to clear.
Drivers:
Partially fueled by the rally in the Gold market, silver prices have also witnessed a disconnect from traditional fundamentals such as tighter financial conditions. Silver does have many uses in industrial applications, and China is one of the largest consumers.
Recent Chinese Manufacturing PMI showed improving conditions, expanding at the highest levels in nearly a year. Stronger economic data from China will remain in focus as silver prices approach the next level of resistance.
Technicals:
As we have broken out of the near four year long wedge, we now approach major overhead resistance. To see Silver prices test $30/oz we will first need a decisive break and close above $28.30 - $28.89.
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