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Silver has definitely resumed its up move as the massive rally takes XAG/USD into new seven year highs. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, sets the target at the 31.7150 level.

Key quotes

“Silver has rallied from just below 25.00 to just above 30.00 in four trading days.”

“We note the 13 count on the daily chart and this is a warning signal. We would tighten stops on long positions to 27.00.” 

“Above 30.09 will target the 50% retracement of the move down from 2011, this is found at 31.7150. Longer-term, the target is 35.47, the October 2012 high.” 

“Intraday dips are indicated to hold in the 27.35/75 band and we view the 24.21 18th January low as an interim low.”