Silver on the move in break to fresh highs since 2016

Price triggered some stops in a quick move above $20 earlier, racing to a high of $20.43 before backing off slightly to $20.24 now. That sees silver trade to its highest levels since August 2016, as the commodity continues to soar after bottoming out in late March.

 

If buyers can maintain the current showing, it would mark 11 weeks of gains in the past 12 weeks for silver - its strongest winning momentum since the parabolic move in 2011.

 

Much like how gold is aiming to break its 2011 highs, silver is also currently aiming to break its 2016 highs and the overall outlook is still considerably optimistic - similar to gold.

 

Another thing to note about silver is that plenty of investors are starting to give it more attention and focus as the gold trade becomes more and more crowded, and upside momentum in gold prices may stall as a result.

 

There's a saying in the market that 'silver always lags gold' but if gold prices are looking poised to take a run further and investors are also starting to keep silver as an alternative, the conditions look ripe for silver to keep going as well in the long-term.

 

For now, just be mindful of the highs at around $20.50 to $20.78 as well as the 2016 high of $21.14 as those will be key resistance regions to watch on any further upside move.

 

Reprinted from forexlive, the copyright all reserved by the original author.