Silver Chart Flashback - The Last Time This Happened, Prices Jumped 31%

Summary

In this video, the Smart Silver Stacker analyzes the current silver market, highlighting a potential breakout pattern similar to one from 2024, which saw a 31% price increase. He discusses the key technicals, including Elliott Wave patterns, corrections, and silver's 200-day moving average. He suggests that silver could rise to new highs if history repeats itself, especially with upcoming decisions from the Federal Reserve. The video also touches on broader economic factors such as currency devaluation and the silver deficit, encouraging viewers to stay informed and sign up for his free newsletter for more insights.

Takeaways

• 😀 The silver market may experience a significant rally similar to a previous 31% rise in 11 weeks, following a bullish pattern observed in its chart.
• 😀 The speaker highlights the Elliott Wave five-wave impulse move, where silver showed a strong upward trend starting in February 2024, peaking in May 2024.
• 😀 After the May peak, silver underwent an ABC correction, bottoming out in August 2024 at around $26.44, setting up for the next upward movement.
• 😀 A second five-wave impulse moved silver up to nearly $35 in October 2024, representing a 31% price increase from the August lows.
• 😀 The 200-day exponential moving average (EMA) is a key technical indicator for silver, showing a support level before price increases in August and October.
• 😀 A descending wedge pattern, a typical bullish setup, has appeared on silver's chart, potentially signaling a breakout and higher prices.
• 😀 The technicals suggest that silver could break above $35, but this might not be a smooth upward trend, with possible fluctuations along the way.
• 😀 The Federal Reserve's upcoming FOMC meeting and interest rate decision may influence silver's price, with little expectation of a rate cut but potential market impact from Jerome Powell's comments.
• 😀 A neutral or dovish tone from Jerome Powell could lead to an upward movement in silver prices, while a hawkish tone could cause a temporary pullback.
• 😀 Beyond technicals, the speaker notes broader fundamentals like currency devaluation, high debt, and silver deficits as factors that could drive silver prices higher.
• 😀 The speaker encourages viewers to sign up for a free e-newsletter, which includes valuable insights and a report on avoiding costly silver stacking mistakes.

Q & A

What is the pattern forming on Silver's chart discussed in the video?

The pattern discussed is a five-wave Elliott Wave impulse move followed by an ABC correction, with a breakout from a descending wedge. This setup suggests a potential rally in silver prices.

What does the Elliott Wave pattern signify for silver's price movement?

The Elliott Wave pattern indicates that silver's price followed a five-wave impulse up, experienced a correction, and is now positioned for another wave higher, potentially exceeding $35 per ounce.

How significant is the $35 mark for silver in this analysis?

The $35 mark is significant as the speaker suggests that silver could break this level and reach new highs, based on the current technical setup and past price movements.

What role does the 200-day exponential moving average play in this analysis?

The 200-day exponential moving average is a key indicator of support. Silver touched this line in August and before its recent move higher, showing it could act as a support level again before another price rise.

What does the descending wedge pattern indicate on Silver's chart?

The descending wedge is a bullish setup, suggesting that after a breakout, silver’s price is likely to rise. It signals that the price has been consolidating and is now primed for a breakout upwards.

How does the Federal Reserve’s interest rate decision influence silver's price?

If the Federal Reserve adopts a dovish stance or signals a potential interest rate cut, it could spur a rally in silver prices. Conversely, a hawkish stance could lead to short-term price corrections.

What is the market expectation regarding the Federal Reserve’s interest rate decision?

The market expects no rate cut, and the current federal funds rate is expected to remain between 4.25% and 4.50%. The speaker anticipates that any remarks from Jerome Powell could influence silver's price movement.

What impact could Jerome Powell's comments have on silver’s price?

If Powell adopts a neutral or dovish tone, silver prices could rise. However, if he maintains a hawkish outlook, silver might experience a brief correction before continuing its upward trend.

What external factors contribute to the potential rise in silver's price?

External factors like currency devaluation, massive deficit spending, high national debt, and a physical silver deficit in the market all support the fundamental argument for higher silver prices.

How does the speaker suggest traders and investors should approach silver at this moment?

The speaker suggests that traders and investors should monitor the technical patterns, particularly the Elliott Wave and descending wedge, and also keep an eye on the FOMC meeting for any signals that could drive silver prices higher.