The secondary higher-bottom formed in December Silver at 29.93 is a strong sign of renewed buying. The subsequent four-day rally has put the market in a position to take out the recent swing top at 33.10. A trade through this level will turn the main trend up on the daily chart for the first time since September 22.
Daily December Silver Pattern, Price & Time Chart
Further evidence that this market is gaining strength is the penetration of the downtrending Gann angle at 31.98. Regaining the uptrending Gann angle at 37.74 will be another sign that buyers have renewed their interest in the long side of the market.
Once the trend turns up, the market should have room to rally to at least 50% of the main range of 43.50 to 26.15. This price level is 32.22. If upside momentum continues then traders should look for a possible test of the 61.8% retracement level at 37.37 within the next 1 to 2 days. The downtrending Gann angle and the 61.8% level form a resistance cluster.
