After a brief correction lower on August 30, Silver was able to continue its climb higher after buying support was found along 19.33 and prior resistance at 19.52 was broken. The acceleration higher shows that the bulls are ready to challenge the May 13 high—also a one-year high—at 19.84. The momentum that might accompany a break of such a psychological level could attract even more buying momentum.

Commodities Update

The 15-minute chart shows the near-term strength currently in Silver. The Rising Wedge pattern alert reflects a short-term uptrending pattern with support at 19.60 (Y) and resistance at 19.72 (X). The pattern’s short Length reading—at just 33-candles—should be considered a more aggressive look at the bullish momentum, but does not negate the importance of continued support at 19.60 if the one-year high is to be broken. With a six-bar Autochartist Initial Trend reading and the weak trend it connotes, there is a high likelihood of a pullback to support before resumption of the move higher. This makes the area following a possible continuation higher through 19.72 where momentum must pick up in order to push Silver to a breakout.