Silver May Rally Above $39 On Range Breakout

Nearly 6+ months ago, our research team highlighted a unique price range that appears to be repeating itself in Silver. This price range consists of a $5.40 bullish or bearish price phase. Using our 100% measured move techniques, we’ve seen silver move higher and lower by this range over the past 10+ months and, quite interestingly, the current sideways price range in Silver is almost exactly a $5.40 range. After a bit of research related to the explosive upside price move in June 2020, where Silver rallied from $17.75 to levels over $28.75 – an $11 Candle Body Range (nearly 2x the $5.40 range), our researcher team believes the next breakout move in Silver may be another 2x or 3x rally – ranging from an $11+ rally to a $16.50+ rally. This suggests a potential upside price target in Silver near $39 to $45 if our research is correct.

POTENTIAL SILVER BLASTOFF ONCE PRICE CLEARS $30

This Daily Silver Futures chart highlights the continued $5.40 range that has “bound” silver over the past 4+ months. The peak in price, near $30 represents the high price level that would have to be breached if any breakout attempt is confirmed. Initially, we expect to see the $28 (upper channel) level breached, then we need to see the $30 breached as the breakout move continues/confirms.

The news that the Reddit group is targeting Silver, as one of the most heavily shorted markets on the planet, suggests we may see a very explosive move higher in the near future if enough pressure is put on the shorts to present a real short-squeeze. The other interesting facet of this setup is that Silver has already initiated a bullish price phase while the global markets appear to be in a Depreciation phase. We have written about this in a previous research article entitled Long Term Gold/US Dollar Cycles Show Big Trends For Metals – Part II.

If our research is accurate and correct, the combination of the Reddit targeting, extreme short positions, longer-term Depreciation cycle phases, and the current Bullish Silver price phase may prompt a very big and explosive breakout move once Silver prices clear $30.

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