Silver on the daily chart has recently broken out higher through a key resistance level and moved higher. We can see on the daily chart that Silver has formed a base around the lows and is now looking to form a new short term up-trend that could see price beginning to move back higher. In the way of price moving higher is the near term resistance which price is now testing as I write this blog.
Price is now caught in between this near term resistance and the key support level. For price to continue with this new trend higher price is going to have to break this resistance and move higher to make a new higher high.
If price does fall lower from this resistance level and into the key support level it may provide a solid opportunity for traders to hunt for trades to get long from a key support level with the trend higher. If price does move into this level it is important traders don’t just enter trades randomly, but they look for the best bullish price action before entering any possible trades.
SILVER DAILY CHART | 13 AUGUST 2013