What a difference a few hours can make! After posting the article “The Great Silver Standoff”, additional research for a new Silver Market update revealed that on the arithmetic chart, silver has in recent days successfully tested the lower channel line of a fine parallel uptrend channel, and is now in position to break strongly higher, an event that can be expected to trigger another strong rally in gold.
The 6-month chart for silver shows the fine uptrend channel and how, with the lower channel line now approaching the price from beneath, it is about to force an upside breakout. While a breakdown from this channel is technically possible, and would of course be a sell signal, it is assigned a very low probability. WE THEREFORE COME DOWN OFF THE FENCE DECISIVELY AND EXPECT A MAJOR UPSIDE BREAKOUT BY SILVER VERY SOON.
Any sidelined funds from recent sales of precious metals stocks should be immediately redeployed in strong gold and silver stocks that are not ridiculously overbought. If you have recently sold stock take the opportunity to redeploy into those with the most potential.
