 Hello, welcome to this week's CMC Markets Commodity Snapshot. My name's Jasper Lawler and we're going to be looking at silver this week, namely because there has been what could be quite a significant technical breakout higher in silver. And that does make a lot of sense because the US dollar index has been plummeting from the highs it reached just a month or so ago. And so that lower dollar is feeding into high commodity prices and we want to investigate if that can continue. As mentioned the dollar index reached peaks just over 100 but has subsequently fallen down and that matches a spate of really disappointing economic data in the US which really got summarised yesterday when we saw that actually the Eurozone outgrew the US which actually looks like it probably contracted in the first quarter of the year and data since has been fairly disappointing suggesting there isn't much of an economic rebound in the US. So why does that matter for silver? Just because silver is denominated in US dollars and so that relative weakness in the US dollar is just feeding into commodities markets. Now what's been interesting is that oil prices and copper prices have already been breaking out alongside this collapse in the dollar but gold and silver the precious metals have been relatively subdued and so what we could perhaps be looking at now is some of those precious metals gold and silver particularly silver notably breaking out and perhaps catching up with the gains that we've seen so far particularly in oil this year. In terms of the physical demand and supply for silver we're basically coming out of a period of quite high demand for silver particularly from the likes of China and India but that's not really been particularly reflected in the price and equally tomorrow's that's Friday's hot report is probably likely to show that speculative interest is really what's driving prices here relating to these topics particularly the US dollar that we've been talking about so it's not the supply demand of silver it's really these speculative flows particularly in the futures markets which are driving prices. That said let's have a look at the chart for silver to try and gauge this potential shift in sentiment through the price action. Now this is a daily candlestick chart for silver now it's going all the way back to around July of last year in 2014 and since then we've been in a downward sloping market for silver with this obvious trend line that's been drawn here but what's happened is that we've not really been making lower lows the market wasn't really able to close through 1550 throughout 2015 and now this declining trend line has been broken to the top side and you can see at the moment that we're just pushing through the 200 day moving average as well. So if we get a close through that for the day and particularly the week that's potentially strong bullish sign for silver and if you do take the projection a conservative projection not using this spike low in December but rather this more conservative low in November as the height of the pattern project that from this breakout area we could actually be looking at prices close to those July 2014 highs so potentially a big move coming up in silver very much does depend on the dollar index and how that works but something to keep an eye on here. That's it for this week CMC markets commodities snapshot we're looking at silver now this is a price action breakout from a declining trend line so we're looking for the price to close above there there's a bit of a resistance above at 1735 some recent peaks as well as the 200 day moving average but for any progress in this any questions at all please contact myself and you can see my Twitter handle on the screen here. Thanks a lot good luck trading.