It is the first day of the Chinese New Year. This is the Year of the Dragon and silver roared with life as it broke the resistance provided by the declining 50dMA, forming a long white candle.
The next resistance level is provided by the 100dMA at US$33.17 an ounce. With the MACD on the verge of crossing into positive territory after forming a higher low as silver tested US$26.00 an ounce thereabouts late last year, the positive divergence could see silver's price pushing higher in time.
If the 100dMA should be overcome successfully, the next resistance is provided by the 200dMA and that is currently at US$35.93 an ounce.
Given the relative volatility of silver's price, look to the weekly chart for guidance as a longer term chart shows stronger supports.
The 100wMA is the crucial support to watch. In the last decline, this support was broken briefly and likely to have weakened. Despite the strength of silver's upmove in price, it is still in danger of forming a lower high which could see price retreating once more. Whether the 100wMA would then hold as support would be the question on everyone's mind.
If the 100wMA should break, the next long term support is provided by the 200wMA and that is at US$21.65 and that is some way to fall. However, expect very strong support at the 200wMA if it should be tested.