Silver is in the early stages of what could be a very bullish move.
The price of silver has been in a stealth rally over the past few weeks. It’s gone mostly unnoticed, as many traders have been distracted by the action in cryptocurrencies, lumber, and skyrocketing non-fungible token (NFT) prices.
But, the silver rally is heating up.
And, it could make a big move… Soon.
Take a look at this chart…
Silver has been in a wide, nine-month long trading range between $23 and $28 per ounce. It tested the lower end of that range in late March. And now, the price of silver is approaching the upper end of that range.
It looks to me like silver is ready to break out to the upside of this trading range…
The moving average lines on the chart have shifted into a bullish formation with the red 9-day exponential moving average (EMA) above the green 20-day EMA, and the 20-day EMA above the blue 50-day moving average (MA).
This sort of “bullish crossover” often marks the start of an intermediate-term rally phase.
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You’ll notice the last time the silver chart showed a bullish crossover, back in December, the price rallied from $24 an ounce to above $28… A gain of 17% in about three months.
This time, the bullish crossover occurred with silver trading at $26 per ounce. A similar gain of 17% would push the price up above $30 within the next several weeks.
Keep in mind, though, silver has been stuck in a trading range for nine months… There’s a lot of energy built up in this chart. So, if silver can break out to the upside of the range, then it could lead to a much larger rally than what occurred back in December.
Most folks aren’t paying any attention to silver just yet. The action has been too quiet for too long.
But, if silver can rally above $28 per ounce, the market will take notice.
Traders should use any short-term weakness in the metal as a chance to buy.
Best regards and good trading,
Jeff Clark
P.S. Last Friday, contributing editor Eoin Treacy sent out his first edition of Eoin’s Insights – where he briefly discussed inflation, and what he thinks will be the trades to look for post-pandemic. Luckily, Eoin will be posting his market analysis every Friday, so don’t forget to tune in.
Today, he’s going to be sharing more of his trading ideas and off-the-cuff market musings. Check it out down below…
Eoin’s Insights
Hey, Market Minute readers. First, I would like to thank all the readers who sent in positive feedback about my first video last week – I hope my videos will help you make more informed investments.
And now, I’ll be talking about the movement in bitcoin, the “cult” of Tesla, and the tech sector. Just click below to watch.
All the best,
Eoin Treacy
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