Is a multi-year bull market about to start in Silver? We should find out soon!
This chart looks at Silver since the early 1970s. It has spent the majority of the past 35-years inside of rising channel (1).
It created a series of flat bottoms and lower highs in the late 1990s. When it broke out at (2), it rallied for years to come, where it gained several hundred percent.
Silver hit the top of this channel back in 2011 at $50, where a long-term bear market started. The 65% decline over the past 8-years has it testing the bottom of this multi-decade channel and its 23% retracement level of the low at $3.50 and high of $50. While testing the 23% level, it has created a series of level lows and lower highs.
Silver looks to be creating a pattern similar to the lows back in 2001 when it was creating a base to start a multi-year bull market from.
If Silver breaks above heavy resistance at (3), it is possible that it could be starting a new leg higher, similar to the breakout in 2002!
Keep an eye on falling resistance, as it is the first short-term key to proving if Silver is about to start a new “Hi-Yo Silver” rally.
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