Silver is Breaking Out Again
Silver broke out of a bull flag today on strong volume, signaling that the next leg of the bull market is underway and pointing to an immediate price target of $72.
Yesterday, I published an update on silver, highlighting the prevailing pessimism and frustration among retail investors. In contrast, I expressed a bullish outlook and noted that silver’s post-Thanksgiving breakout on November 28th remained firmly intact. I also pointed out a bull flag pattern forming on the chart, which is a technical setup that typically signals a continuation of an uptrend once it breaks out. Less than 24 hours after that update, the breakout occurred, just as expected. I’m writing this quick follow-up to show you what happened and what I anticipate next.
Let’s start with COMEX silver futures, which surged nearly 5% today to a fresh all-time high of just over $61, breaking out of the bull flag pattern decisively on strong volume. This is a positive development that indicates a strong likelihood of further gains in the near term. It is also important that volume was strong today, as it confirmed the breakout. I explained the importance of watching for strong volume on breakouts in a recent tutorial.
Today’s breakout is the second in the past couple of weeks, with the first being the breakout from the ascending triangle pattern that formed in October and November.
