September silver futures closed up $0.588 an ounce at $28.595 Monday. Prices closed near the session high, hit a fresh two-month high and scored a bullish “outside day” up on the daily bar chart. Monday’s price action could be the beginning of a bullish upside breakout from a sideways and choppy trading range on the daily bar chart. Silver bulls and bears are now back on a level near-term technical playing field, but bulls do have fresh upside momentum. Bulls’ next upside price breakout objective is closing prices above solid technical resistance at the June high of $29.915 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at the August low of $26.88. First resistance is seen at Monday’s high of $28.645 and then at $29.00. Next support is seen at $28.445 and then at $28.335. Wyckoff’s Market Rating: 5.0.
