Front month silver is trading $23.05 up about 7-cents on the day. As you see the monthly chart below, silver is likely heading to Aug 2013 high of 25.12. In my view, the range of resistance is between 25.00 to 27.00. This month, silver took out 7-years high and likely poised for more gain. The path of least resistance remains high. Silver continues to benefit over gold on this rally. The gold/silver ratio is now near 82.00 as it was in 2018. I mentioned this last week, a break below 95 in the dollar index as seen this morning would only give silver push to head into the $25 to $27 range. The only thing that could slow down silver trajectory would be a dramatic breakthrough in Covid-19 vaccine or significant reduction in new cases.
There are other factors that are working it the background but the trend is your friend. A trader once said, “ trade what you see, not what you think”. What you see is a breakout and un uptrend. Any break to the downside, will likely be seen as an opportunity for late comers to jump on the bulls wagon. If you need additional help, please let me know. We can also approach this market using options as well the 1000oz contract.