Originally published by AxiTrader
Context is everything in markets. And to gain that context I like to review monthly and weekly charts as well as my usual daily, and sometime 4-hourly charts.
When I did my usual monthly take across the markets I follow the monthly silver chart stood out in all those markets as easily the most interesting.
That's because it looks like it has built a base from which it could trade sharply higher.
What we have here is that silver has built a massive wedge formation over the past 10 years as prices initially rallied sharply from $8.63 and ounce in 2008 till the high of $49.78 in 2011. From
From there silver slipped to a low of $13.77 in late 2015 from whence it has tried to build a base and looks now to be breaking higher.
Recently silver looks to be consolidating a break of the recent downtrend from May last year - which also happens to also link back to the 2011 - over the past two months.
But it hasn't gone on with it yet, as the $18.48 level has been the high since the break.
So at $18.28 presently silver remains outside this monthly downtrend but in a longer term sense, for me at least, it would need to take out the recent high, plus a few cents, to confirm the break and signal prices are heading higher.
This is a long term - monthly - chart - so this could take time. But the signs are there that silver is building for significant move toward $20.10/20 and then $21.10/20 - perhaps higher.
A move below $16.90 would negate this outlook.
Have a great day's trading.