Silver closed another solid week, right above secular breakout. Technically, this is day #1 entirely above its secular breakout point. We need another 3 to 5 days of closing prices above 28 USD, without touching 27.60 USD. Will silver finally break out, as per our silver forecast 2021?
The silver consolidation is becoming a real beauty. However, until a breakout is confirmed, anything can happen. We have to be patient, more than we would like to. But this setup gives us a lot of confidence!
The importance of a daily closing price above 28 USD can be found in silver’s monthly chart. The epic breakdown in silver that started in April of 2013 started right at 27.60 USD. The chart below does not require any further comment.
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.
In the meantime silver miners are setting a giant bullish setup in the form of a W-reversal over 7 years. At the same time one could see a cup-and-handle formation: the cup over 7 years (W-reversal) and the handle over the last year. Super bullish, and a break above 52 points will be a secular breakout.
The daily silver miners chart makes us really excited. Almost there, with the breakout, is what we see.
The silver market is a pressure cooker, ready to explode. It may not happen now, but it will eventually happen in the short term, is what we see in these charts!
In our Trade Alerts portfolio as well as our Momentum Investing portfolio we took a short/medium term trade and longer term investment in the silver market. In our Momentum Investing portfolio we went overweight silver miners since May, and it’s not too late to initiate those same positions.