A weakening dollar overnight has given us quite the rally in our precious metals. As noted in the last post, I expect the dollar to explore the lower end of its recent range and this should give additional support to the metals. Again, I'm hoping both metals can trade this week back up toward their most recent intraday highs of 1415-20 and 30.25-50. This will set the stage for the new year blastoff of the next UP leg.
In the short term, I offer you these three charts for some perspective on the silver market. Note that, post-1980, silver has not closed above $30. In fact, the closing highs from three weeks ago are 29.74 and 29.78. These are the first levels to watch. As you can imagine, a close above $30 will really get the algo machines humming, particularly if we can finish the week there.
Have a great day!