Silver Prices Impress the Market

The $40.00/oz silver price has certainly drawn in plenty of speculative interest on the long side as the technical picture reverses completely.  This after we saw volume starting to grow on July 13th, a bullish gap up day, nearly taking us out of the trading range contained for 48 trading days.

The key danger here is having a base established 25% below current levels.  That being said, the resistance has been breached, along with $40 and $40+ will hold a couple days at least from here, there are so many bullish signals coming in at once, I feel pretty strongly about it.



This rally could very well take us back towards another test of $50.00 before the end of the summer, earlier than I previously expected.   


The gold to silver ratio remains in a serious downtrend from mid 2010, losing support as silver's volatility lends itself to larger gains, in what is a casually failing monetary system. 

The weekly and daily charts are below.