Silver…
I have stated my position for a few months now that I think silver won’t breakout until late 2021 or early 2022. The reason is because in the last bull market, silver needed to tag its rising 100 WMA before the next leg up could begin, as can be seen in the below chart.
What is frustrating for anyone long silver, is that it tends to do nothing for long stretches before it explodes higher. As you can see in the below chart, the last silver bull run could be broken down into just four price spikes over a 9 year period. Each and every one of them was preceded by a test of the 100 WMA.
If silver were to just go sideways from here, the rising 100 WMA won’t meet price until the spring of 2022. Of course price could drop to meet the rising 100 WMA before then too.
Does history have to repeat? Absolutely not. But it should at least temper expectations IMO, especially if you are using leverage or need the money in the short run. (It should be noted that at least some silver miners, like PAAS, exhibited the same behavior with respect to the 100 WMA.)
Good info. Thanks.
Hi Nautilus !! Thanks for your chart and interesting observations on 100 MA. I believe there is something to it ! But what do you mean by „breaking out“ ? Silver could rise nevertheless without „breaking out“ as it did from 2004 to 2006 (after crossing 200 MA and going up parallel to it without touching the 100 MA. So Silver could go up beyond 30$ during the following months and clearing ATH late 2021…. (as in late 2006) ?
By breaking out, I mean breaking above the $28-30 resistance zone (and not subsequently breaking back below that zone).