Market outlook: silver (Aug 2012)

With this week’s rally, the silver futures market has broken a key monthly downtrend line dating back to the highs of last April and August 2011.  Silver has now formed a multi-month supportive base at $26.

(silver weekly chart)

(silver daily chart)

If it can stay above $29.25, look for silver to travel to the top of its recent 12 month range, and approach the $36 area. The next important levels to watch above this area are $44 and $48.