Silver is back to its 18 month lows. It is getting really frustrating for silver investors. It also put silver in a challenging position to meet our silver forecast 2022. Our first target for 2022 is 34.70 USD. Silver needs to complete its reversal which is ongoing for 18 months now.
The silver chart is both fascinating and scary.
It is fascinating because the reversal is now getting really solid. There is body, substance, and it only gets better and more solid over time.
The important pre-requisite here is for silver to respect its 18 month support level: 21.5-22.0 USD is the level that has to be respected, on a 3 day closing basis.
At the same time it is clear that the multi-year rising trendline (red rising line) got rejected in November. Silver will need to overcome this (as resistance) before it can start rising.
Presumably, overcoming the red rising IS going to be the ultimate confirmation of silver’s new bull run.
On the other hand, as said, the silver chart is also somehow scary. What if support gives up?
For now, we see a slightly higher low against September. It’s promising. But silver absolutely must avoid moving lower from here. IF it does so, we believe this will be a really attractive entry point for long term silver investments. Silver might never get back to this level provided it starts moving higher from here!