Silver - iH&S breakout - $28.24 by year end
Silver is coming back up off the yearly lows and has painted an inverse Head & Shoulders pattern which is now breaking out on the daily timeframe.
This has been triggered in part by yesterday's US Inflation rate data (YoY was 6.2% - the highest annual pace since Nov 1990). Similar price action can also be observed in other inflation hedges such as Gold and BTC breaking out yesterday.
To determine targets we look at the inverse H&S measured move, which coincides nicely with the 0.786 fib level as well as the horizontal resistance area from post-Covid highs. Other possibilities (shown with dashed & more transparent arrows) are price stalling out a little lower - at 0.618 fib level ($26.78) or the descending resistance TL (roughly $27.38).
Targetting 0.786 fib - $28.24
Lesser target 1 - $27.38
Lesser target 2 - $26.78
Zooming out to see the bigger picture to the Monthly chart. If (and only if) we break above post-Covid highs can we begin to look for moves higher to 2011 levels.
If this scenario were to play out - I would look to fib levels again for potential targets in the not so distant future (would expect these to play out over the next few years):
1.618 fib - $35.45
2.618 fib - $44.11
3.618 fib - $52.78
This has been triggered in part by yesterday's US Inflation rate data (YoY was 6.2% - the highest annual pace since Nov 1990). Similar price action can also be observed in other inflation hedges such as Gold and BTC breaking out yesterday.
To determine targets we look at the inverse H&S measured move, which coincides nicely with the 0.786 fib level as well as the horizontal resistance area from post-Covid highs. Other possibilities (shown with dashed & more transparent arrows) are price stalling out a little lower - at 0.618 fib level ($26.78) or the descending resistance TL (roughly $27.38).
Targetting 0.786 fib - $28.24
Lesser target 1 - $27.38
Lesser target 2 - $26.78
Zooming out to see the bigger picture to the Monthly chart. If (and only if) we break above post-Covid highs can we begin to look for moves higher to 2011 levels.
If this scenario were to play out - I would look to fib levels again for potential targets in the not so distant future (would expect these to play out over the next few years):
1.618 fib - $35.45
2.618 fib - $44.11
3.618 fib - $52.78
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