Spot silver has scored its first upside breakout in three years. The weekly chart below shows just how significant the breakout is. Resistance at $27 an ounce had been a barrier for almost four years. The two red arrows are bearish reversals that were easily exceeded.
To get really excited about silver, it must hurdle $30 resistance. As you can see on the weekly chart, $30 has been a barrier since August 2020. But having hurdled $27, silver is in what should be its final trading range before hurdling its $30 barrier. My work projects that the trading range between $26-$30 is in its final stages.
Silver’s monthly chart below shows that it is in the late stages of completing a huge 13-year “cup and handle” base. In a sign of strength, silver sprinted like an Olympian from $13 to $30 in just five months in 2020. But since then it has spent most of its time trading between $19 and $29. While this lengthy period of consolidation might seem like watching paint dry, it is a necessary preparation for an eventual breakout. Once silver has a monthly close above $31, then my work would confirm upside projections to $45-$55.
In the April 7 Institutional View, I recommended that my clients buy Silver at $28. While it could be bounded by a $26-$30 trading range for a few months, that will create a launchpad for a major advance. On a breakout above $31, I would add to positions such the iShares Silver Trust exchange-traded fund. And that would be the time to take an even more aggressive position in silver mining stocks such as Agnico Eagle Mines and Wheaton Precious Metals.
CEO and Founder of CanAm Bullion has been dedicated to delivering exceptional value to Canadians since 2017. Driven by a mission to empower Canadians with expert investment advice and education, he has positioned CanAm Bullion as a trusted resource for those seeking to enhance their portfolios with precious metals. Under Michael’s leadership, the company has become synonymous with reliability, knowledge, and dedication, helping Canadians achieve greater financial stability and long-term success.
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