Silver
On a number of recent occassions I have pointed out what needs to happen for a silver breakout. So far, those three distinct elements have not come together.
They are, a strong Thursday session, followed by an even STRONGER (larger percentage gain) Friday session with a follow thru breakout above 26.50 on the following trading day.
In my past posts I have presumed it would occur on a Tuesday following a three day holiday.
I believe that isn’t necessary. I believe the three day weekend over a holiday, will be one or both of the two larger future breakouts, the one that comes taking out the $30 top from 2021 and or the one that comes taking out the $50 ATH from 1980 & 2011.
This first breakout that gets the ball rolling doesn’t need a three day weekend because it isn’t going to correspond to a bank holiday. That is more likely with the $30 level and is most likely with $50 being breached. The new all time high above $50 and beyond, should see the end of the Comex and force majeure for their paper contracts. That would likely lead to a banking crisis and bank holiday. Those past times when I thought the breakout might occur were usually week’s that had important news events and economic stats that could have been a catalyst.
Every one of them either popped and got capped by naked short selling to stop the rally, or like last week, had the govt. stats and or the FED creating a narrative that could allow the same manipulation.
Since catalysts that are manufactured and controlled have not worked, something different is more likely. Either a catalyst so big that a negative narrative to support the price capping won’t work, or no catalyst at all. Maybe, just a slow steady rise that builds momentum without any specific news.
Today being Thursday, let’s see if we can get the first of the three needed elements. A good size rally in gold and more so silver that can gain steam tomorrow with a larger gain, that closes near the high? With Silver under $23 it is going to take a big move today to get a possible breakout scenario started. Maybe it is going to be a stealth, under the radar move, with no one expecting it, to get things going?
We will find out tomorrow. If we get the first two requirements, a strong move higher today, and an even larger gain tomorrow closing near the high, then the third and definitive breakout explosion, is likely on Monday. We wait and watch, what could be the start of something big and completely unexpected.
Thanks CM.
The GSR has been stretched between 89-91 for about a week now so as long as gold holds steady, silver could be snapped up at any time. US 90% Junk (bulk $100FV) can be bought at around $17FV at Monument Metals (cheapest I’ve found anywhere on the net). ASE’s at or under $28 – bought cull’s from my LCS at $25.50 ea. – just a dollar over BU rounds.
Potential double bottom here on silver if it can develop momentum.