Silver Imminent Breakout Years in the Making
Updated
Silver is at an imminent breakout zone years in the making. This likely might just be the trade of the year is not the last few years. The equilibrium is getting very tight with SLV making it's first weekly higher low since December 2017.
Furthermore the macro fundamentals are very bullish for precious metals. The Feds also recently reverse course on rate hikes and expectations are now rate cuts. And as crazy as it sounds, this is all on the back of strong economic numbers. With the looming potential of further escalation of trade wars and heighten political instability; it seems easy monetary policy is almost certainty. And the icing on the cake is that Silver to Gold is near all time lows. As long as bullish momentum continues, there'll come a time where silver is going to slingshot and play catch up with go and it may happen quite soon.
Furthermore the macro fundamentals are very bullish for precious metals. The Feds also recently reverse course on rate hikes and expectations are now rate cuts. And as crazy as it sounds, this is all on the back of strong economic numbers. With the looming potential of further escalation of trade wars and heighten political instability; it seems easy monetary policy is almost certainty. And the icing on the cake is that Silver to Gold is near all time lows. As long as bullish momentum continues, there'll come a time where silver is going to slingshot and play catch up with go and it may happen quite soon.
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Precious metals have continued to perform strongly due to trade war escalation between the US & China. Silver has also decided to finally play catch up with gold on the back of this technical breakout resulting in a heck of a rally.I am still very bullish on Silver long-term and have held 100% of my position since early July and only begun to take a bit of profit on anticipation of a potential pullback. It's always good to take a little bit of a profit on a rally as significant as this, we are pretty much overbought on all the longer term time frames. Expecting a higher low to form on the daily chart sometime sooner than later.
Trade active
Now that longer-term RSI levels have cooled off and we are still bullish silver long-term. This range currently is an attractive range to re-enter long positions. Prepare for volatility but I think there's a good chance we bounce from here as we are approaching some key support levels as well.
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