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 Reporta daily technical correspondence. As a member of the Market Technicians Association, he has distinguished himself as a professional in the field of Technical Analysis and currently holds the Chartered Market Technician (CMT) designation. Erik can be reached atetatje@rjofutures.com or 312.373.5176. Learn more at www.rjofutures.com

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