Here's What to Watch After Silver's Big Breakout

Silver's 7% surge on Friday signaled the start of the next leg in the bull market. Now what? Here's what you should watch closely moving forward.

After silver broke through the key technical levels I had been monitoring and writing about on Friday, I released an in-depth report and video presentation on the upcoming silver bull market and why it would likely evolve into a silver squeeze. In this update, I’ll highlight several key factors that everyone should watch to track silver's progress, confirm the ongoing validity of its breakout, and identify important price targets to keep an eye on.

Let’s start with the most rudimentary chart of all: spot silver priced in U.S. dollars. As you may know, I’ve been emphasizing the importance of the $32.50 level for several months, stating that silver's bull market would be triggered once it decisively closed above it with strong volume. On Friday, silver knocked it out of the park with a 7% surge on volume that was 50% above the average of the prior week. Now that silver has broken above that level, it's in a confirmed uptrend. Today’s 3.33% pullback doesn’t worry me, as silver remains above $32.50, which is now a support or a floor. After such a sharp surge, a pullback is normal and expected. We may see continued bouncing around for a few more days before silver is ready to head even higher.

The other key level I’ve been discussing for months is €30 when silver is priced in euros. I closely monitor silver priced in euros because this approach removes the impact of U.S. dollar fluctuations, offering a clearer view of silver's intrinsic strength or weakness. Notably, silver priced in euros often respects round numbers like €26, €27, and €28, frequently establishing key support and resistance levels at these points. On Friday, silver surged above the €30 level with gusto and that level is now the new floor. As long as silver stays above that level, it can fluctuate all it wants—I won't be concerned.