Silver: This Giant Bull Flag Will Be Fuel For The Big Explosion Of 2023

silver bullish

Silver is about to test the resistance of a giant bull flag, one that has been in the making for two and a half years. More importantly, however, is the breakout that will eventually come, as it will be explosive and push silver much higher in no time. But, haven't we already said all this before in our silver forecast?

Last week, we went on record stating that fear is rising and gold & silver will be obvious beneficiaries:

"Gold is strongly correlated with Treasuries. It is also inversely correlated with the US dollar. What we see unfolding in markets right now is resistance in the US dollar. Since Thursday, we have also observed a rise in Treasuries.

"Both suggest that the market believes that Fed must stop its aggressive hiking campaign.  The TLT chart confirms a bottoming formation in Treasuries. Not a regular bottoming formation, but a really strong one."

When Treasuries are in an uptrend, gold and silver often tend to follow. Treasuries are moving higher right now. Sooner or later, they will unleash sufficient ‘intrinsic power’ for precious metals to create their own uptrend. In the meantime, we can see a very interesting setup in silver now.

Rest assured, it is still a matter of time until silver erupts. And what an eruption it will be once $23 in SLV (not spot silver) is cleared.

The silver chart (which illustrates both SLV and spot silver) depicts a giant bull flag that has been in the making for two and a half years now. One thing we know from history is that the longer the bull flag, the more explosive the power will be once the bull continues its upward trend.

Equally important is the chart dynamic that is playing out right now. As shown below, the key retracement level is currently being tested. The falling trendline that originated in the summer of 2020 is now very close to the key retracement level. You know what this means: if 2 crucial chart dynamics coincide on the timeline, it will become easier for the price to overcome them.

Junior silver miners will react to this, just as they are already starting to react to the coming breakout in silver, as evidenced in the article, "Junior Silver Stocks: A Triple Bullish Signal, ‘Under The Radar’ Wildly Bullish."

Our silver position in our Momentum Investing portfolio has been doing really well. The upside potential is tremendous.

More By This Author:

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Fear Rising, And Why Gold & Silver Will Obviously Benefit From This

This week, we wrote a gold & silver update to premium members, " more

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