Silver is Breaking Out

Silver broke out of its ascending triangle pattern today, indicating that a run to $100+ has likely begun, though I am looking for further conditions to be met for more assurance.

Yesterday I wrote a report about a bullish chart pattern forming in silver known as an ascending triangle, and I explained that a successful breakout from it was likely to send silver to well over $100. Today, spot silver surged 6.63% to a fresh all-time high of $85.17, which means it has broken out from that pattern. I’m writing this brief update to share my observations on the move and what I would like to see next.

As I explained yesterday, the top of the ascending triangle in COMEX silver futures was at $83, and I was looking for a breakout above that level on strong volume to confirm that the next leg of the rally had officially begun. Today, we got that breakout, though volume was only average. I would ideally like to see more conviction behind the move, which may still come over the next few trading sessions assuming the breakout holds.

Another condition I was watching for was a breakout above €71 in silver priced in euros, and that also occurred today: