The recent silver breakout means that silver is likely on an almost clear path to this target area (previously presented):
(Click the thumbnail above, to expand.)
The current bottoming pattern from around 2014 to now is very similar to the early-2000s’ bottoming pattern.
I have highlighted two similar patterns (marked 1 to 5). The bottoming period of the early 2000s started when silver broke down at the black support line (bottom of the channel) in late 2000 and made a low at point 5. This is similar to the period since the breakdown at the blue support line (bottom of the channel) in late 2014, eventually making a low in 2020.
I have indicated how the current chart position is similar to late 2003, when silver prices were still around $5 USD per Troy ounce. The recent breakout is a significant indication that price could move relatively fast to the blue line.
Price will probably soon move back inside the channel just like it did in December 2003 and stay above that blue line for the rest of the bull market. So, although there could still be pullbacks along the way, it is expected (based on these fractals) that we are now likely in a sustained silver rally similar to 2010-2011, for example.
In a previous article, I showed how significant silver peaks occurred within 8.5 years after the Dow/gold ratio peak, with the Great Depression silver peak occurring the soonest (6 to 7 years after).
It is now 6 years and 10 months since the Dow/gold ratio peak of October 2018. In other words, there are still about 1 year and 8 months (20 months) left before we get to the 8.5 years since the Dow/gold peak.
Given that silver actually rallied on a sustained basis for at least two years before each of those peaks, we are likely to see silver rally for most of the coming 20 months.
When considering that we are probably very close to monetary reform, the rest of this decade will certainly make for interesting times.
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Editor’s Note: This article was first published at Hub Moolman’s website. For those who see value in chartist analysis, I recommend his by-subscription silver newsletter. He also has a Silver Fractal Analysis Report available.
Read the full article here