The long-awaiting day has finally arrived. After five long years, silver has finally reached its previous high of $21 set back in 2016. So, now that the silver price has reached and broken through the $21 level, what’s next for investors?
Before I show the charts, let me clarify the difference in silver prices shown below and on Kitco.com. Kitco.com uses the London Metal Exchange (LME) silver price quotes that are approximately 30-40 cents less than the silver futures on the U.S. based Chicago Mercantile Exchange (CME Group) that Investing.com (below) and Stockcharts.com uses for silver price charts.
Yesterday, I was quite busy on my twitter feed, providing updates on the silver price. Here were a few of my Tweets during early trading yesterday:
As I had mentioned on several articles and Twitter, silver had to break above the critical $19.75 level for it to be able to attempt the next target level of $21. And, yesterday, that is precisely what the silver price accomplished. Once silver broke above $19.75 and then $20, it consolidated into an ASCENDING TRIANGLE formation, which can be very bullish or positive for a continued move higher.
The silver price did push through that level and closed near the highs of the day. Then in Asian trading last night, traders continued to pile into the shiny metal, pushing it up even further. However, when silver reached the $21 level, it consolidated around $20.90 before pushing through once again:
Because the $21 level was a long-term RESISTANCE LEVEL when it finally broke through it, the floodgates opened, and the professional traders jumped in. Quickly, the silver price shot up another 50+ cents and has been forming a TOPPING pattern. After a stock or commodity breaks through a long-term technical level, it’s typical for the price to retrace that level. So, don’t be surprised if silver heads back to the $21 level today… or shortly.
It is truly amazing to wait so long to see a decent move in the silver price that when it arrives, it happens so quickly. I will be providing another update using longer-term charts to show where silver may go over the mid to longer term.
I imagine the Precious Metals Dealers are likely to have a hectic day today, and I wouldn’t be surprised to see more bullion shortages in the next few weeks.