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This current week will be an important one as we expect price action will determine the short to medium term path of silver’s price.
According to our analysis, this current week will be decisive as price action during the week will determine whether silver will resolve higher this summer or whether the market will offer one last buy the dip opportunity.
While we tend to end up forecasting in most of our articles, we will not do so in this article (please read our 2024 silver forecast). Rather, we’ll read the timeline and the price axis, both combined, and overlay it with some leading indicator information.
Silver – Timeline readings
As said in the past, 99% of analysts are focused on one, and only one axis on the chart (which is price). Our thesis is that those analysts miss 50% of the information provided by the chart.
The silver chart is no exception – we leverage timeline and price information, both.
When we focus on the timeline of the silver chart, we retrieve some important insights:
- A giant reversal is complete since early April.
- This reversal connects the highs of Feb 2021 with the lows of Sept 2022 in a period of 414 days. Furthermore, after exactly 414 days, the same price point was touched.
- From highs to lows back to highs in twice 414 days. This symmetric setup is important as it suggests a new structure started in April of 2024.
The timeline of the next chart says it all.