Home » Silver futures trading » Silver futures break above $21.38 per ounce

Silver futures break above $21.38 per ounce

The longer term bullish trend for silver continued once again yesterday, with the December silver futures contract closing higher once again, and just failing to breach the $21.25 per ounce price point on the day. Yesterday’s price action provided further evidence of the strength of the recent bullish trend, with an intra day pullback duly recovering strongly, to leave the daily candle with a deep wick to the lower body, which gives us a strong trading signal that the move higher remains fully supported by the 9 day moving average immediately below. This is always a strong trading signal in any market, and is no exception for the industrial commodity, which has duly converted into a further rise in the silver futures contract this morning, which is now trading at $21.38 per ounce, up from a low of 21.12 on the day. With all three moving averages pointing sharply higher, the trend is firmly set for the longer term, as we now look towards $21.50 per ounce in the short term, and $22 per ounce within the next few weeks.

The strong technical picture is also fully supported by the background fundamental framework, with the recent risk on appetite from investors helping to drive equity markets higher, fuelling demand for the industrial metal as a result. In addition, with the FED now preparing to apply further quantitative easing measures to the US economy, gold is benefiting as a result, and with the precious metal making new high ground, this in turn is helping to pull silver higher in tandem.