Hi-Ho, Silver, Aw-a-a-a-y!

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". . .a breakout above last year's high would all but clinch a move to at least $20.21."

Hi-ho, Silver, away! We told subscribers to look for a 25-cent rally in the May Comex contract, but by day's end it had surpassed our wildest expectations, closing with a 43-cent gain on the day.

Here's the forecast as it went out to subscribers the night before: "The futures looked poised for a 25-cent pop, based on a Hidden Pivot target at $18.370. First, however, they'll need to get past. . .[a Hidden Pivot resistance] at $18.210 that lies just beneath yesterday's spike top. My gut feeling is that once the [resistance] is out of the way, the move through the spike top, which lies at $18.235, will be a piece of cake."

If you want to see what a piece of cake looks like, check out the following chart.

Comex May Silver

After blowing past Wednesday's high as the morning began, the May futures needed barely an hour's rest to take out an equally daunting peak recorded on Tuesday. And as if that weren't impressive enough, the May contract was holding onto most of the gains in after-hours trading. Note in the chart that as of around 6:30 p.m. EDT, the correction of Thursday's surge had yet to come down, even, to the level of this week's previous high.

What to Look for

All of this bodes well for silver's performance in the weeks ahead, and if the rally goes just a little further today, exceeding the $18.900 high recorded in early January, we'd infer that buyer will have little trouble punching through the multi-decade high at $19.495 made near the end of 2009. Moreover, and to be precise, a breakout above last year's high would all but clinch a move to at least $20.21, or to $21.53 if any higher.

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