It was no easy task for silver bulls this summer as the market tested the patience and strength of silver bulls. The market fell to test its support of 2600 through summer with a low in June of 2610, never breaching 26000. This made bulls sweat bullets as a break below this would squeeze out longs. A very tight trading range off these lows up to 28445 was created as the market found buyers to step up and defend the June lows, putting pressure against the top of the range which finally gave way for the market to break above going into the December futures contract. The short squeeze has reward summer buyers by reaching its first target of 32 off 29 being a gain of $3 which was the original risk down to 26. Going forward, major resistance is met against 3385-3758 being the range of where the market reversed in March of this year. The second target comes in at 35, however a break above this range at 3758 is needed to trigger a longer term short squeeze and attract more buyers to target last summer’s highs of 44275. New minor support is met at 3100-30265, thereafter, 29500-28500 offers next major support based on the top of the trading range during summer of 2012.
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