Silver has been forming a downward sloping channel over the last 9-10 months. Prices are now approaching key resistance levels relative to that. In addition, the MACD -- which negative -- is moving higher.
Yesterday, prices broke through resistance on the daily chart. Also note the MACD buy signal and the fact that the EMAs are bullishly aligned, with all moving higher. Finally, yesterday's price action was a nice gap higher with prices printing a strong candle.
The 5-minute silver chart shows prices rallied strongly until about 1PM and then consolidated gains. The best part of this chart for the bulls is the lack of a sell-off.
The 60 minute silver chart shows strong resistance at the 33.50 level. Once price moved through that level, they consolidated around the 34.50 area, which they moved through yesterday.
The gold ETF has also rallied, moving through resistance at the 171 area. Now we see resistance at the 175 level.
The above chart is a reason for the rally in both gold and silver: the dollar is moving lower. After rallying through the early part of the year in response to the EU crisis, the dollar has moved lower, first hitting support at the 200 day EMA and now moving below that level.
