Silver has completed its much flagged multi-year base as broke above the $21.14 2016 high. Meanwhile, the Gold/Silver ratio is now seen at a key inflection point, with a break below 88.00 hinting an outperformance of the white metal.
Key quotes
“Silver has seen a dramatic surge higher over the past week and has cleared with ease the key high of 2019 at $19.65. This suggests a multi-year base is now being established as we have been looking for, with the next key test at $21.14, the high of 2016.”
“Through the $21.14 2016 high should further reinforce the basing story, with resistance then seen next at $25.10 and then more importantly at $26.09/22 – the 38.2% retracement of the entire 2011/2020 bear market and key lows from 2011/2012 – which we look to be a tough initial barrier.”
“The Gold/Silver ratio has seen a further sharp fall as silver outperforms and is now testing the 61.8% retracement of its entire uptrend from 2016 and long-term uptrend from 2017 around 88.00. Whilst we would expect this to hold at first, a close below 88.00 would suggest an important break lower and that silver can further outperformance to gold, warranting an exposure to precious metals that comprises both gold and silver.”
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