The price of silver opens trading on Wednesday at a very key technical junction with a 4+ year downtrend in play. At the open of futures trading, the silver price is challenging, and now breaking above, a very significant technical level, around $16.80-$17 an ounce.
The break of this key technical resistance level is likely to fuel short-covering and momentum buyers which could be perfect scenario for the silver price to make a very significant price move in a very short order to the upside. If the silver price maintains $17+ an ounce here, we could very well see the price accelerate gains to the $20-25 level very quickly.
This event would be the first indication that the long-term downtrend in silver prices has ended and the next phase, either consolidation around the $20 area or the trigger for the reversal to $25+ above. We will be watching closely – click here to view the live silver price.
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