A Tradable Silver Price Chart

silver bullish

Silver is in the process of setting a double bottom. We are not concerned that silver will breakdown, for several reasons. Our silver price chart illustrates this double bottom scenario and gives us precise numbers to work with for a trade but also for a long-term oriented investment, which would be in line with our silver forecast.

This daily silver price chart appeared in our Trade Alerts weekend analysis in which we feature the detailed, tradable analysis on silver as our favorite market for 2022 and 2023 (next to the regular detailed S&P 500 trade analysis).

This silver chart setup might look scary. Many believe that silver will break down. We don’t, and this is why. First of all, silver rejected a move lower. You can see a really large ‘wick’ on Friday, June 24, which suggests that lot of buying kicked in right above the lows of May.

Admittedly, the 22 to 23 area was not cleared, but that’s exactly the point about this double bottom scenario: if resistance is too strong, the market goes on to test support. Whatever happens near support is telling. The case for a double bottom is, at present, strong and compelling.

silver price chart

One of the leading indicators for silver is the US dollar. As seen on the daily chart, there is hesitation in the US dollar. The 104-105 area is acting as strong resistance (everyone can see this). However, the more important thing is how vulnerable the US dollar is right now. A tiny move lower will confirm a double top. Because long US dollar was a very crowded trade, it could quickly become the exact opposite.

USD price chart

Another leading indicator are bond yields, which also share an inverse correlation with the silver price. Bond yields seem to have confirmed a double top pattern. The inability to stay above the 3.197 price point is telling. We expect the US dollar to follow the path of bond yields, which is lower, opening the door for a double bottom confirmation in silver.

bond yields vs silver

There is one last leading indicator which is unusually bullish for silver, even in historic terms. You can find out more about this in our  more

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