Precious metals have been under pressure for a long time, but the three charts below indicate that silver might be breaking out. The last breakout attempt of the white precious metal was capped by the rally of the US dollar (starting August 2014). At this point in time however, it seems like nothing stands in silver’s way, at least today.
The first chart shows that silver has broken through its 2014 / 2015 downtrend. The daily chart shows that it did so after testing the trend line two times. Apparently, third time is the charm.
Although the breakout was confirmed on the daily chart, it has not been confirmed yet on the weekly chart. The weekly chart below goes back to the all-time high of silver, which underlines the strength of this statement. Note how silver is close to testing the trend line for the 3rd time.
Furthermore, Peter L. Brandt at kimblechartingsolutions.com identified a perfect symmetry in silver’s head-and-shoulder pattern that started last year around August / September, after the breakdown which was triggered by the monstrous U.S. dollar rally.
Precious metals should be watched very, very closely. It would not be the first time that silver takes the lead and sparks a rally in the precious metals complex (including gold, miners, palladium, platinum).
