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Silver Soars to 1-Year High: Sowing the Bullish Opportunity

by Nico Isaac
Updated: April 25, 2023

This is Chart of the Day. I'm Robert Folsom for Nico Isaac.

Silver Soars to 1-Year High: Sowing the Bullish Opportunity

In honor of National Gardening Day, I used the early morning of April 14 to get my tomato, pepper and strawberry plants in the ground ahead of a spring thunderstorm. "Grow big and strong, little seeds," I said, "so I can enjoy you all summer long." Thunder growled as I padded down the soil over my last plant. I started the workday.

In the garden of financial markets, the fruit-to-fallow cycle is constant. Mainstream financial wisdom says this cycle is nurtured by external events known as "fundamentals." Take, for example, silver.

This March, the growing conditions for silver looked altogether bearish, as Federal Reserve Chairman Jerome Powell's Congressional testimony restated his commitment to higher interest rates to stave off inflation.

According to the master market gardeners, hawkish Fed policies would take the bloom off silver's bullish rose. These early March headlines set the scene:

"Gold, Silver Punished by Still Hawkish Powell"

"Gold and Silver Tumble as 'High Rates' Powell Strikes Again"

"Silver hammered as Powell Flags Risks of Higher Peak Rates"

From Yahoo on March 7:

"The Fed boss now thinks that they will have to go further and faster on rate rises, potentially moving away from the sedate 25 basis points pace of the last meeting.

Precious and base metals slumped, with silver down 4.7% to $20.07 per ounce ... There is room for those expectations to firm if economic strength continues, so gold and silver will remain in a vulnerable place for now."

So the "fundamental" perspective was: silver's price would remain vulnerable.

But from an Elliott wave perspective, a budding bullish opportunity awaited silver.

Here, on March 9, our Metals Pro Service video update showed a version of this chart of silver. There, editor Robert Kelley identified the potential start of a and said:

"I'm losing enthusiasm for staying bearish at the moment. It is fully adequate for silver to be forming a bottom at the current low of 19.95. If prices go above 20.50 ... I would begin speculating that wave C was bottoming. I'd be enthusiastic if prices got above 21.39."

On March 10, silver rallied strongly. Metals Pro Service said the move "very possibly is an early signal of a reversal," adding: "I think it is worthy speculate that price is going to run for a while."

And this is what followed: Silver continued its growth spurt, rallying to a one-year high on April 14.

Trading markets carries risk. And not all Elliott wave interpretations of price action turn out to be correct. But if you want to water the seeds of high-confidence opportunities with objective analysis, labeled price charts, and critical, risk-managing price levels, then our Metals Pro Service can be for you.

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