Technical analyst Clive Maund charts the start of the “biggest silver bull market in history.”
The purpose of this update is to celebrate and mark silver’s powerful breakout from a giant base pattern that started to form as far back as 2013–2014, a breakout which has only happened during the past few days, July 21 and July 22, with Wednesday’s advance finally seeing it break clear above the resistance at the upper limits of the base pattern. While this doesn’t mean it can’t drop back again, it makes it less likely, and even if it does, it is likely to soon turn up again.
Quite clearly, when you are only two days into a bull market that is starting after the completion of a six-year-long base pattern, the probabilities are very high that it has much further to go, both in respect to time and magnitude of advance.
Get our Weekly Commitment of Traders Report: - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.
Get Our Free Metatrader 4 Indicators - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter
Wednesday’s breakout may very well have been triggered by the bellicose actions of the U.S. with respect to China in closing its embassy, or whatever it is, in Houston, which is a continuation of an increasingly hostile attitude to China, based on the U.S. attempt to tear down what it views as its main rival for global dominance.
Now, with its economy getting ever closer to imploding completely, the U.S. is looking to direct the mounting anger and frustration of its population toward a manufactured external enemy, which is what politicians always seek to do when their backs are against the wall.
Wednesday’s action was another step on the road to a major war, which is a normal consequence of economic depression. In addition to that, we had the ludicrous and laughable assertion that Russia has been trying to hack coronavirus research secrets, which is just another irrelevant distraction.
Regardless of what actually triggered the breakout, it was a valid and powerful breakout, as we can see on the charts set out below.
Not surprisingly, the effect of silver’s breakout on all things silver was electrifying, with a good example being shown below, Kootenay Silver Inc. (KTN:TSX.V), which is a silver stock we went for back in May because its charts looked so strong, and which is already up 50%.
With the prospect of hyperinflation in the not too distant future due to relentless and increasingly desperate and extreme money-printing by central banks, the prospects for silver and silver investments have never been brighter as one thing we can look forward to is the biggest silver bull market in history by far.
This is a very good juncture at which to watch Mike Maloney’s interesting and insightful new video on silver entitled Silver Soars–Where to Next?
Originally published on CliveMaund.com on July 22, 2020.
Clive Maund has been president of www.clivemaund.com, a successful resource sector website, since its inception in 2003. He has 30 years’ experience in technical analysis and has worked for banks, commodity brokers and stockbrokers in the City of London. He holds a Diploma in Technical Analysis from the UK Society of Technical Analysts.
1) Clive Maund: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: None. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies mentioned in this article: None. CliveMaund.com disclosures below. I determined which companies would be included in this article based on my research and understanding of the sector.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.
Charts provided by the author.
The above represents the opinion and analysis of Mr. Maund, based on data available to him, at the time of writing. Mr. Maund’s opinions are his own, and are not a recommendation or an offer to buy or sell securities. Mr. Maund is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund’s opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.