The market is coming ‘our direction’, and our silver forecast 2021 published almost 9 months ago seems now underway. We forecasted the mid to higher 30ies to be hit in 2021. We believe silver is ready to start moving in that direction, after a 10 month consolidation period.
Last week we published this article Silver: When Will 30 USD Finally Be Broken To The Upside which featured the silver price chart and the ability of silver to trade above the 3 important trendlines.
On Thursday, June 3d, silver retraced only to test those trendlines. This is a ‘successful backtest’, in charting terms. And if silver trades higher by Tuesday and Thursday, coming week, we’ll have the ultimate confirmation of a successful backtest.
Last week we identified 5 distinct data points that make us believe that silver is about to move higher, not lower.
- The daily silver price chart. Silver is now above 3 trendlines, and did successfully test its breakout point on Thursday. Very promising, see below chart.
- The weekly silver price chart. In essence the backtest from last Thursday occurred at a secular level that goes back 11 years in time! Bullish.
- The USD is not yet in a position to push back precious metals. Eventually it will, but that’s not now.
- The bond market is opening the door for precious metals to thrive. Want to know more about this fascinating intermarket trend? Please read this article.
- Anecdotal evidence comes from our mailbox. In our Momentum Investing portfolio we went overweight in silver miners in the last 3 weeks. Some members are doubting this is a wise thing, especially because of the USD and the fact ‘we are buying high’. This, for us, is the ultimate evidence of silver to move higher: concerned investors amid a great silver chart and phenomenal intermarket dynamics.
We believe silver is ready to move higher. It might start as early as next week or in a few weeks. Whatever happens in the silver market we believe the downside is limited, and the upside potential far outpaces the downside risk.
In our Trade Alerts portfolio as well as our Momentum Investing portfolio we took a short term trade and longer term investment in the silver market. Moreover, we published a very detailed silver market analysis this weekend to members of both services, you can have instant access to this detailed analysis by simply signing up.