It is clear that silver is preparing itself for something big. We have been talking about silver since May last year. While the big run is taking longer to start than we expected (read: the market needs to get intermarket conditions right) it is only going to be more powerful. Good things take time to happen, and our bullish silver forecast takes time but is underway… and so is our gold forecast.
Often times, investors are way too close to charts, markets, price changes. They fail to see the bigger picture.
At InvestingHaven, we mix lower timeframes with higher timeframes. We constantly look to create a balanced view between big trends and detailed information.
If we zoom out and look at the silver chart we see a constantly improving setup. In fact, it is pretty clear to us that silver is ready to complete the very last part of a huge cup and handle, in particular the last leg of the ‘handle’.
Try to imagine what happens to this chart if we get a relatively small leg higher to 28 USD. Can you visualize it? An outrageously and insanely bullish setup.
Why should we expect this last small leg to 28 USD, and not a breakdown to 15 USD?
It’s simple: intermarket dynamics are right for this to happen.
On the one hand, as said last week in A Dramatic Rejection In The US Dollar. Good For Metals In 2022. The USD is a leading indicator.
On the other hand, inflationary forces are picking up. No, we are not talking CPI data. We are talking inflationary markets. The chart below, a very big picture view of the silver price overlaid by the inflationary trend (light grey) show a constructive setup for both. As seen, in the last 20 years both have been strongly correlated, directionally, on the long term. Also, both have printed turning points in a similar period of time (give or take 3 to 6 months).
That’s why we love big picture charts. They bring in piece of mind, they give you time to reflect and act.
Silver is about to crush it, mark our words. The market is simply waiting to get all conditions and intermarket setups right. It is a matter of time.
In our Momentum Investing weekend alert we shared 6 silver mining stocks that made it into our shortlist. In our Trade Alerts weekend alert we shared a few really juicy silver charts with 3 ways to ride the trend (from low risk / short timeframe to big risk / long timeframe / huge profit potential).