Friday, January 27, 2012

Silver Breaks $34

Live New York Silver Chart [ Kitco Inc. ]Silver continues its impressive week, shaking off the standard COMEX open smash just after 8 am EST, adding nearly a full dollar since the AM raid, and breaking through $34. 
The cartel would love to see silver close under $33 today, as a weekly close above $33 has strongly bullish implications on the charts.  With silver's current strength taking out $34, it does not appear that Blythe's chances for a silver close under $33 for the week are likely.

Live New York Silver Chart [ Kitco Inc. ]

Look for the next significant resistance to emerge near $35.  We expect the cartel to put up significant resistance near this level, as a clean break through $35 would bring a significant amount of energy and action back into the silver market, and see a rapid move back towards $40.