Silver Takes Flight

In my June article, "The Great Reset," I announced that the resistance at $18.50-$19 would be attacked around July 10th. The $18.50 level was effectively broken on July 8th and the $19 level was broken on Monday, July 13th.

The following Monday, July 20, we saw a bullish rush causing silver prices to rise by 36% in 8 days. An extremely rare phenomenon due to a massive redemption of short positions from traders taken against the grain.

The big pullback in March took the prices down $7 from the resistance of $19. When this resistance was broken upwards, prices moved up exactly $7 to the resistance of $26.

Note that the final rise took place when the markets opened in Asia and the consolidation was done in flash before 9 a.m and the markets opened in Europe.

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If we look at the monthly chart and compare the crossing of this same resistance of $19 in September 2010, it then took two and a half months to reach the level of $26, which then had no resistance. In 2020, it only took 8 days to reach this level.

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In 2010, there was a short-squeeze on the silver market exactly like today. The consolidations after bullish peaks lasted one or two weeks, so they were non-existent if you look at the monthly chart. After crossing the resistance at $18.50, silver prices rose directly to $31.

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On this July 31st, 2020, I have the impression in UT 4H, that the consolidation could already be completed. The support for the upside seems to be the MM50 in UT 4H. Silver prices crossed the small resistance that connects the two peaks of July 28 and 29.

This daily, weekly, and monthly close should end at the day's high, to keep the market resolutely bullish.

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Silver is expected to break through $26 resistance in mid-August, before bumping into resistance at $27.50 and hanging off a bit. The level of $30 could be reached at the end of September, a deadline each year very important for the silver market.

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