Silver Breaks Out Above $21, What’s Next For Investors?

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?

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:

SILVER BREAKOUT CONTINUES...

Now that silver breaks through the $19.75 level, it's likely to go to the next target of $21.

Also, while #Gold Eagle Premiums now back to normal levels, #Silver Eagle Premiums still near highs

READ MORE: https://t.co/kPkakBqROi pic.twitter.com/EvxZohGw50

— SRSrocco Report (@SRSroccoReport) July 20, 2020

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.

After Silver short-term BREAKOUT above $19.75, it as corrected and is setting up a nice steep ASCENDING TRIANGLE formation.

A break above this line could see another leg higher.

Check out Pan American Silver closing its silver mines in Peru

CLICK HERE: https://t.co/1KT7iW6Y4x pic.twitter.com/XhPWadOCNh

— SRSrocco Report (@SRSroccoReport) July 20, 2020

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.

Silver Reaches the $21 TARGET LEVEL and another BREAKOUT above it, up another 50 cents in early trading

How much higher will it go before it finally has a healthy correction and consolidation?

It's very important for prices to consolidate in order to move higher, LONG-TERM. pic.twitter.com/2noB78L3fl

— SRSrocco Report (@SRSroccoReport) July 21, 2020

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:

SILVER UPDATE: Silver now forming a TOPPING pattern. Don't be surprised to see it retrace the $21 level.

After a BREAKOUT above a long-term resistance level, it's typical for the price to retrace that level. pic.twitter.com/c154GM5gkp

— SRSrocco Report (@SRSroccoReport) July 21, 2020

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.