Before I delve into the new 12 year High for Silver and its implications, I would like to take a step back to one of my previous posts for Silver's price action for the week ended 23rd August 2024 with the header "Is Silver bracing for a new All Time High? - Analysis for the week of 23rd Aug, 2024." Please read it here for the full context.
Since the last post when silver had formed a Bullish Engulfing pattern on the weekly chart closing up into a strong consolidation zone, it took resistance and fell for 2 weeks. It then formed a big green candle in the 3rd week (Week ended 13th Sep, 2024) closing above the high of the week ended 23rd Aug, 2024. This signified a breakout from a 1-2-3 bottom, a bullish pattern. What followed in the next 3 weeks were smaller green candles with the candle for the last week not only making a new 12 year High but also closing at the highest level in the last 12 years.
Lets look at the weekly chart of Silver below to comprehend the price action.
Silver Weekly Chart - 1-2-3 bottom breakout leads to a new High of 12 years
The new high close on Silver represents another bullish breakout - a Triple Top breakout. The first high close was 31.49 in the week of 17th May, the second was 31.21 in the week of 5th Jul and the latest close was 32.18 in the last week. This breakout should lead to higher prices in the coming week - following in the footsteps of gold?
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