Although looking superficially toppy, and although it is clearly vulnerable to a sharp intra-day dip towards $7.00, the broader picture is that silver appears to be consolidating February's sharp rise, prior to launching an assault on the resistance in the vicinity of the December highs in the $8 area.
The action of the past 6 weeks or so has allowed the overbought condition that had developed by the middle of February to unwind substantially and the moving averages to pull up beneath the price, thus increasing upside potential.
The outlook is therefore viewed as positive, which fits with the outlook for gold and the dollar. With significant nearby support, any dips in coming days to the $7.00 - $7.20 area would be regarded as a buying opportunity.
