With spot gold touching record high, silver is catching up in this bull run, as it has started a powerful wave "3" which will travel to $45.79, the 100 percent Fibonacci projection level, based on the length of the wave "1".

It won't be a surprise if silver goes beyond $45.79, to reach $51.25, the 161.8 percent Fibonacci projection level, as a wave three is typically very sharp.

From a longer perspective, the current wave "3" is part of a bigger upward wave (5), which will be able to travel high above the peak of the wave (3) at $49.51.

Support is at $40.50, a fall below which will temporarily violate the bullish outlook and will extend to $39.60.

** Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.

No information in this analysis should be considered as being business, financial or legal advice. Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.

Copyright Reuters, 2011