“A break above $20.60 would mean another $1.60 or so to the topside, which will take silver to the $22.20 area as a double bottom target. There is a also second area of resistance at $23.08, which was the high of the last bounce.
Similar to the $1,434 area on gold, if silver can get up and test $25.10, and ultimately get a weekly close above that level, then we would be looking for a move to the upside in excess of $6 from that major breakout point. Meaning, we would look for silver to move well above the $30 level after that key resistance is taken out on the upside (see chart below).
It looks as though the metals may be set to rise much further if we can see this type of strength in the silver market. This would also mean that silver would advance much more aggressively vs gold in percentage terms. As an example, if we see gold move from the $1,300 to $1,650, that’s a decent move. That’s about a 27% gain.
But a move on silver from roughly $20 to the $31 area, that would represent a 55% surge, or double the percentage gain that would be seen in the gold market. This would obviously mean the magnitude of the advance in the price of silver would be extremely aggressive."