Silver remains one of the few commodities that we like a lot. In fact, silver has (by far) the most powerful bullish setup we currently see among hundreds of markets. We still believe our bullish targets as per our silver forecast 2021 are underway!
On June 17th, 2021 silver got sold Last week we identified a 2nd cup and handle in this 10 month consolidation structure on the daily silver price chart.
This is what we wrote in Silver Chart: A Cup And Handle Party
The chart below shows these 2 grey boxes which, according to us, represent two distinct cup-and-handle formations. The market has to prove this right, but we expect the recent decline to be the start of the 2nd ‘handle’.
Bullish on silver until proven otherwise, and the micro-pattern we’ll see next week on both charts of gold and silver will be telling.
So far the market is confirming our viewpoint: the last part of a double cup and handle formation is being printed right now. Bullish until proven otherwise.
Moreover, during the last trading week which was a quiet week for precious metals we got a good setup for a bullish micro pattern. Not entirely confirmed yet, we need gold to decisively move above 1800 USD next week in order to have sufficient bullish evidence.
Two weeks ago we wrote this The Driver for Silver’s Secular Breakout
The one asset that can push gold and silver higher is TNX: bond yields. And it is breaking down. Another few days with red candles will push silver higher, and confirm its breakout.
Since then bond yields did not help precious metals. Especially last week they showed some strength. We still believe bond yields will be flat rather than bullish.
Moreover, as long as the USD does not decisively move above 94 points we believe silver (and gold) can continue to be bullish.
