The blue line in the silver chart below shows support around $19, going back 7 months. In the last few days of May, the silver price broke below that line. But by June 10, the price broke out through the line sharply. The breakdown at the end of May was a false breakdown.
Thursday’s price move also drove above the 100-day and 200-day moving averages (not shown). In March, silver had dropped below both averages, which have been falling for a long time.
No matter how you look at the price chart, the sharp spike in the silver price appears very bullish.
This is a good opportunity to reiterate our long-standing advice. Never naked-short a monetary metal.