Is Silver Breaking Out?

Let's notice that spot iShares Silver Trust (SLV) appears to be on the verge of upside acceleration after climbing above its 16-month resistance.

The week-long high-level consolidation area above the trendline is a very encouraging sign that spot Silver has freed itself from the grasp of an intermediate-term correction ahead of another upleg that should revisit 37.50 in a hurry.

Meanwhile, the Silver Wheaton Corp. (SLW) still must rally to 36.30 just to confront its 16-month resistance line, which should be hurdled in route to 40.00/25 thereafter.

My near-term pattern work argues that SLW ended a week-long high-level correction, and this morning started a new up-move within the upleg that began at the May 16, 2012, pivot low at 22.94.