Silver Has Begun A New Bull Market This Week (What Is Next)

Silver has begun a new bull market this week. Now people throw around the words “bull” and “bear” market a lot without really thinking about what they are saying, much less explaining it so it is important for us to be real clear on what we are talking about. I’m getting emails now asking me for my next silver price target to sell into. We have to think of the big picture now – and not just the daily price gyration on an app.

Markets go through cycles of which a bear and bull market are a part of. I call these cycles stages.

During a bull market, a market trades above its 150 and 200-day moving averages and they act as support. During a bull market, these moving averages become great long-term buy points.

This is stage two. In stage four you have a bear market where these averages act as price resistance. This is actually happening with many sectors inside the US stock market now such as airline stocks.

After a bear market, you typically get a stage one basing phase in which these moving averages go sideways, and the bigger the base people like to say the bigger the next bull market will be.

So take a look at silver as this breakout this week as it cleared a giant base resistance that has been in formation now since early 2016.

This move this week reminds me a lot of when silver broke out in late 2003 out of a base that also took several years to form. Silver then ran up to over $20 an ounce where it peaked in 2008. Yes it went above $45 back in 2011 and people talk a lot about that level now, but i twas that big breakout in 2003 that was really the time to buy silver and get involved in it instead of in 20011 or 2008.

Here is an interesting tweet Jordon Roy-Byrne put out – showing what silver would do if it repeated its move in past bull markets.

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