Silver is once again testing a breakout level. Any breakout point is also resistance. This is the 5th breakout attempt. Any move higher will bring silver to the 35 to 40 USD area. Will it be different this time? Will our bullish silver price forecast be hit now or later this year?
In our Trade Alerts weekend update we wrote this to premium members, one week ago:
Silver will probably need to consolidate before breaking higher. Worst case, it might not succeed in moving higher though. But the point is this: as long as SLV continues to trade above our stop loss it will eventually move higher, and move to multi-year highs. It might not happen next week, but there is a fair chance it will happen in June/July. It’s worth the wait, so we keep our loss where it currently is and we simply wait!
This is what we wrote today:
One week later we can only confirm that silver has a bullish bias. The last 3 candles are bullish: a bullish micro pattern. We like this a lot, but have to admit we started getting concerned on Wednesday. This pattern has a good probability of breaking out, at least 50%.
With a weak USD setup, a solid Euro setup, with a great reversal in gold we believe silver might do well. And if it’s not this coming week, it might be in a few weeks that it will eventually break out.
The one trendline that is so hugely important is the falling red line on below chart, the daily silver chart. The last 3 daily candles look really good, and it is a pre-requisite to have a bullish micro pattern right at these crucial levels in order to allow a breakout.
Silver will play a crucial role in achieving our bullish target. In our Momentum Investing portfolio we want to own one or two silver miners, over time. In our Trade Alerts portfolio we will be trading in and out, as silver moves higher over time.