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Silver futures remain bullish

silver futures chart

A positive week for silver, with the March futures contract ending the week with a fifth consecutive day of gains and breaking above the $29 per ounce level to end at $29.425 per ounce and just below the high of early November, which originally signalled the short term pull back of the last few weeks. The most significant day last week was Tuesday, which ended with a wide spread up candle holding above all four moving averages and also clearing potential short term resistance in the $28 per ounce region. This has now become a platform of support for a sustained move higher, with Friday’s relatively wide spread up candle adding further to the bullish momentum.

Below, the short term moving averages are providing an excellent platform to the trend higher, and with the 40 day moving average also sloping upwards, the longer term sentiment for silver remains positive. My own forecast for the year end in spot silver was $26.50 per ounce, so we are well above this level, and could even move beyond $30 per ounce before the end of the year, a target which now seems increasingly likely. The risk on appetite of investors is also helping to fuel demand for the industrial metal, and with China continuing to increase demand for the metal, the prospects are favourable for an extended run for the metal well into next year.