Silver futures appear to be nearing an inflection of great importance.
But first, let’s talk about how we got to the point.
Silver crashed hard along with most assets when coronavirus hit the news headlines in February and March of 2020. But from there it reversed higher, and rallied sharply to above $30, where it peaked in August of 2020. After a correction, silver has been trading in a narrowing range.
All this can be seen on today’s “monthly” chart of silver futures.
A potential “pennant” pattern looks to be forming around the 50% Fibonacci retracement level at (1) over the past 12 months. This pattern suggests that when silver breaks (up or down) from this pattern, the move should be a big one.
Looks like “the big move” is not too far away for silver. Stay tuned.