Silver off to roaring start in May

Silver (COMEX:SIM14)

Despite recent weakness thus far in 2014, Silver has been off to a roaring starting in the month of May.

After bottoming on May 1 around 18.685, price has been on an upward surge, rallying nearly a dollar off its lows. The biggest challenge in the way of further upside in Silver appears to come in the form of resistance around the 19.750 - 19.770 area on the chart. This level of support also happens to coincide with the 61.8% retracement of a previous sub-range in price, dating back to the 4/10 high. If price can sustain a move above this resistance area, then there is a very real possibility that Silver could make a move back above 20.000. Furthermore, there does appear to be some good technical support around the 19.500 – 19.560 area on the chart, which should keep prices from falling back on its heels.

Silver 30-minute Bar Chart (e-Signal)

 
About the Author
Erik Tatje

Erik Tatje is currently a market strategist at RJO Futures and is the author of The Tatje Report, a daily technical correspondence. He has been an affiliate member of the Market Technicians Association since 2011 and has passed all three levels of the Chartered Market Technician (CMT) program. Erik can be reached at etatje@rjofutures.com or 312.373.5176. Learn more at www.rjofutures.com.

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