This silver price breakout looks like the real deal
(Kitco News) - The silver price breakout looks to be gathering momentum. As you can see from the daily price chart below, silver has made a new "higher low/higher high" pattern and pushed above the psychological $25/oz area. This seems to have much to do with the correlation with gold and other precious metals being bulls. Still, nevertheless, the market is backing the grey metal.
Looking closer at the technicals, the trendline in grey has been broken conclusively. There is always the chance of a trendline retest, but the encouraging sign is that the volume increased on the break higher. Also, the price is above the volume point of control (VPOC) marked by the red horizontal line. This is a decent signal that the trend is becoming more bullish.
In terms of resistance zones, the next one is marked by the high volume nodes on the volume profile indicator. $26/oz had been sticky in the past and could be once again. Beyond that, $28.90/oz is the more important one, and if prices get that high, the prominent $30.35/oz is next.
On the downside, the VPOC (red line) area is next but the consolidation low just below $22/oz is the main area of support.
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