Silver price now back above its 55 day moving average – ‘breakout’ confirmed?

Earlier today we wrote that gold had broken back above its 100DMA and was hovering just below its 55DMA – painting an intriguing technical set-up for gold in the coming days.

Silver seems to be a few trading days ahead of gold in terms of breaking its moving averages. Silver has now broken above the $22 level and looks like the move will stick this time around. The $22 level has been keeping the silver price in check for exactly a month, and it now looks to be offering up support rather than resistance

Silver $ (4hr):

silver $ 22 october 2013 a(click for sharper image)

We can see the sellers have been keen to keep the price under $22 for the past month – is this phase now over with?

In terms of the moving averages silver crossed back above its 100DMA on the 17th of October. Silver then rallied onto test its 55DMA the past few days, and today it looks for all the world that silver has now broken above its 55DMA.

Silver $ (daily):

silver $ 22 october 2013(click for sharper image)

Back at the end of September we wrote about a bullish technical formation known as a ‘golden-cross’ (where the shorter term MA rises above its longer term MA). The last time this happened silver went onto rally some 19%.

The 55DMA ‘crossed’ above the 200DMA on the 23rd September (for gold this happened a few days later on the 26th September), and a similar 19% move from these levels would take silver onto well above $26.

Silver $ (daily):

silver $ 22 october 2013 b(click for sharper image)

If this break-out sticks, there really isn’t any major overhead resistance until we get back to the August 28th highs around the $25 level.

Link to this article: : http://www.goldmadesimplenews.com/silver/silver-price-now-back-above-its-55-day-moving-average-breakout-confirmed-12061/

Posted by on Oct 22 2013. Filed under Silver News. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.

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