Silver Is Ready to Break Out. What to Watch For. Once silver breaks the $30 barrier, it can head as high as $45-$55 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. « Previous Article Next Article » Share This Article Choose Your Platform: Facebook Twitter Google Plus Linkedin Related Posts What Is the FED Hiding? READ MORE Gold, Copper Only at the Beginning of a Much Longer Bull Market READ MORE HSBC: Commodity Markets Are in a ‘Super Squeeze’ READ MORE Bonds Fall After ‘One-Two Punch’ of ISM READ MORE Add a Comment Cancel replyYour email address will not be published. Required fields are marked *Name * Email * Save my name, email, and website in this browser for the next time I comment. Comment