Technical analyst Clive Maund charts silver and explains why he believes the metal is primed to move much higher.
by Clive Maund
Streetwise Reports
The silver setup could scarcely look better. We have already seen in the parallel Gold Market update how gold is in position to slingshot vertically higher out of a giant Bowl pattern, having already made new highs last year. While silver’s chart does not look as strong as gold’s—yet—that is normal at this stage in the cycle.
On silver’s latest 13-yeat chart we can see how, after breaking out of its giant base pattern in the middle of last year, it was beaten back by the resistance shown to then successfully test the breakout point, and has already started higher again and this time it should have little trouble driving through this resistance because the dollar is collapsing. Note how strong the volume indicators are on this chart, with the Accumulation line already making new highs.