Silver remains to be in consolidation mode since early September, nevertheless it seems able to rally over a sustained time period.
Beneath, is a chart of silver:
On the chart there seems to have shaped some fractals. The present one has additionally damaged out on the black line not too long ago (simply after level C).
As anticipated, worth survived the check of the 50-day shifting common, and is trying actually bullish.
If the comparability stays legitimate, then we will count on a large rally over the approaching months.
That is in line with a extra long-term expectation for silver, as beforehand expressed within the following chart:
On the chart, the primary section of the silver bull market was from 1993 to the top of 2001, and the second section is doubtlessly from 2001 to the top of 2015.
It seems that there’s a similarity between the 2 phases. I’ve drawn some traces, and marked some patterns to indicate how they could possibly be related.
The primary section is marked 1 to three, in black, and the second 1 to three, in blue. Each of the phases seem to happen inside in a broadening channel, from which they each broke down, after level 2.
After breaking down from the channel there was a consolidation that ended at a brand new level 1. The primary section managed to get again contained in the broadening channel once more. If the present sample follows and do the identical, then we’ll see some excessive silver costs.
Now worth seems to have damaged out of the triangle on the backside, and is able to chase the broadening channel.
If the comparability continues to carry true, then we might see a large rally over the approaching months that may doubtless make new all-time highs. That is in line with the signal that the Dow is flashing.
Disclaimer: The views expressed on this article are these of the creator and will not mirror these of Kitco Metals Inc. The creator has made each effort to make sure accuracy of knowledge offered; nonetheless, neither Kitco Metals Inc. nor the creator can assure such accuracy. This text is strictly for informational functions solely. It isn’t a solicitation to make any trade in commodities, securities or different monetary devices. Kitco Metals Inc. and the creator of this text don’t settle for culpability for losses and/ or damages arising from using this publication.
