The month of June came with a short-lived ‘pump’ in broad markets, market breadth started showing early signs of recovery after the ‘bad breadth’ hit markets since February. However, patience and nerves of silver investors have been tested thoroughly, specifically this week. We start seeing a really interesting setup on the spot silver chart, both in terms of price and time. We firmly believe that our silver forecast 2023 is well underway, we can see how this ongoing secular breakout test in silver is going to resolve higher (even after a thorough breakout test that is lasting 58 days), we even believe this might be the last chance to get into the silver market before it takes off late(r) this summer.
Although we tend to look at our own proprietary spot silver charts, we’ll look at a very different chart today: silver futures without annotations and our pattern(s) annotated.
It was a rough week for silver, at least that’s how it felt.
But was it a bad evolution in the big picture of silver?
No, it was a meaningless pullback, at least so far, provided silver will provide support around current levels (which is what we expect).
Let’s see if we can get to that conclusion in a factual, data driven way. Consider the following:
- The most recent 4 daily candles are getting smaller and smaller.
- The gaps between the last 2 daily candles start looking like a bullish micro-pattern.
- Moreover, silver has a track record of failed moves, in this particular case it starts looking a lot like a failed breakdown (bear trap).
- Finally, what stands out to us, today, is the harmonic state between price and time. This often tends to collide with a turning point, it remains to be seen if this particular instance will qualify as a turning point as well.
All our leading indicators are really strong for silver, medium to long term. While anything can happen in the short term, we start sensing that the silver retracement has run its course.
All in all, all data points suggest the end of selling is near and the start of the next run is near as well.
Frankly, this might be the very last chance to get on board of what we believe is becoming the start of the big silver run, the one that will push toward and past ATH.
For our Momentum Investing members, we created an overview of our top silver stock selection: Selection of Top Silvers Stocks For Long Term Portfolios >>
