On Tuesday, China cut interest rates and unveiled an extensive stimulus package to boost its struggling economy. These announcements sparked a surge in commodities like gold, silver, and copper, bringing my bullish outlook on silver closer to fruition. I decided it was an opportune time for a quick update.

Let's start with silver's daily chart. Since its peak in May, silver had been languishing for several months until it finally broke above a downtrend line that started in May, closing above it last Friday. In my original Substack piece, I highlighted this breakout as a promising sign of strength. On Tuesday, silver had surged 4.56%, reaching its highest level since May. Silver now needs to close above its $32.50 resistance level with strong volume to confirm that the next leg of the bull market is underway. Once silver clears the $32.50 resistance, it's likely to surge toward $50 rapidly. I'm focusing on $50 as an intermediate-term target because it's a significant psychological level and the peak reached during both the 1980 and 2011 rallies.

For further confirmation, I find it valuable to analyze silver priced in euros. This method removes the impact of U.S. dollar fluctuations, offering a clearer view of silver's intrinsic strength or weakness. Interestingly, silver priced in euros often respects round numbers like €26, €27, and €28, frequently establishing key support and resistance levels at these points. These levels are worth monitoring closely—take a look for yourself. On Tuesday, silver closed above both the €28 level and a downtrend line that started in May, marking a very bullish development. The final hurdle is for silver to decisively close above the €30 level on high volume, which would be the signal that silver is ready to take off.

Silver mining stocks are also important to watch for confirming silver's price movements, as they often mirror investor sentiment toward the metal. The Global X Silver Miners ETF (symbol: SIL), the most heavily traded silver mining stock ETF, has been stuck in a flat range since April. A strong, high-volume close above the $36 to $37 resistance zone would signal that both silver mining stocks and silver itself are poised for a significant breakout. After surging on Tuesday, SIL is very close to breaking out.