Junior silver miners (SILJ) are hitting one of the most important price levels. This is happening a few months before a few epic chart events will occur, as per our timeline analysis. We predict that a giant breakout is brewing in silver miners, based on our bullish 2023 silver forecast, driven by an ongoing breakout of this giant bull flag in silver. forecast which will push silver miners much higher.
SILJ is the ETF for silver mining stocks, and the chart you have shared is a daily chart showing the price movement of SILJ in the last 3 years.
Looking at the chart, we can see the following:
- Junior silver mining stocks started declining in the summer of 2021.
- Since then, they are range bound, working on a long term reversal.
- This is happening near the lows of a long term channel (green shaded channel).
- Very important: a long term rounded pattern, long term bullish, is working a strong support. SILJ is also respecting this long term rounded pattern. More about this rounded pattern in this recent article: Junior Silver Stocks: A Triple Bullish Signal, ‘Under The Radar’ Wildly Bullish.
In terms of our own annotations, we can see that there are several key levels on the chart that have played important roles in SILJ’s price movements. For example:
- The $9.0 level acted as support in October 2022, resistance in November and December, and then support again in February 2023. The $11.0 level was resistance in late November and early December, support in late January and early February, and then resistance again in early April.
- The $12.0 level is the most recent level that SILJ has been testing, a very important one.
This latter is a crucially important level.
Why? Because of the following reasons:
- It is the 50% retracement level. Since last year June, SILJ printed a perfect cup-and-handle formation right below this level. Investors pay attention when these setups occur, WE do pay attention, for sure.
- The 2 year falling trendline, green thick line, is about to fall below this 50% retracement level. That’s one resistance line less, this will facilitate a breakout.
- At the same time, the multi-year rounded pattern, dark yellow rounded line, is about to cross the 50% retracement level. This should support price to push higher, simply because it is a chart pattern that is 5 years in existence.
From a timeline perspective, we predict that junior silver miners will start an epic breakout, clearing the 50% retracement level, between June 12th and July 28th, 2023.
We will closely follow up on this and will issue top junior silver miners in our Momentum Investing service.