Silver is currently going for a major breakout.
Here is a chart I featured months ago:
(click to enlarge)
On the chart, the first phase of the silver bull market was from 1993 to the end of 2001, and the second phase is potentially from 2001 to the end of 2015.
It appears that there is a similarity between the two phases. I have drawn some lines, and marked some patterns to show how they could be similar.
The first phase is marked 1 to 3, in black, and the second 1 to 3, in blue. Both of the phases appear to occur within in a broadening channel, from which they both broke down, before point 3.
From point 3 there was a consolidation that ended at a new point 1. The first phase managed to get back inside the broadening channel. If the current pattern follows, then we could have a big rally soon.
Price appears to be after the start of a new point 1, and a confirmation would come when price breaks out of the triangle (consolidation) – provided that price do not break down from the triangle instead.
Silver is now very close to the breakout, which could come as early as this week. A successful breakout could see a very big move over the coming weeks.
Gold has also made a significant breakout. For more on this and this kind of fractal analysis, you are welcome to subscribe to my premium service.
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