Almost a month ago I shared the chart below, which reflected that Silver gained almost 50% in two weeks back in 1979-1980, after a key breakout.
In that post I mentioned that an upside breakout could push Silver much high in short order, similiar to the action of 1980, taking it back to the $50 level. (see post here) The gains of the last month haven’t been as dramatic as 1980, yet Silver is up over 25% in 29 days!
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Below is long-term update on Silver, dating back to the 1970’s…
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The 61% Fib level was important for Silver, causing a sideways action, before a breakout. The gains in Silver have been impressive and continue to reflect relative strength over gold. As I have shared in numerous posts, I have nothing against Gold, its just the “Power of the Pattern” was suggesting the better play was in Silver.
I have expressed in prior posts that Silver could test the highs at $50 and so far the price action is moving towards that test! Should it reach $50, the price action at that level will become the key to actions investors should take, which can not be determined at this moment in time!
