The breakout target is $44. But to realize that, we need to recover soon and see new highs above $37.30 the high so far. Indicators are for the most part neutral here.
On June 5th, silver finally broke above both the $32–$33 and $34–$35 resistance zones that had capped its upside for the past year, frustrating many silver bulls, including myself.
Silver finally broke out and made new 52-week highs. However, we don’t like the way it broke out. Platinum is doing something similar. Both made new 52-week highs this past week...
Silver-futures buying is likely getting tapped-out. These super-leveraged traders have far more room to dump longs and ramp up shorting than keep buying, which is ominous for silver.
Silver was sharply higher this past week, reaching a high of 36.51 and closing at 36.13, up about 9%! We are moving higher in wave 3, as shown on our Weekly Silver Chart.
That silver is leading is a positive sign. With silver’s fresh gains ahead of gold, the gold/silver ratio that topped out recently at 107.66 has now fallen to 92.
