Gold is just a glimpse; the silver bull run is yet to come

In the realm of commodities, precious metals have historically served as both a hedge against economic uncertainty and a lucrative investment channel. While gold often captures headlines with its glittering rallies, silver, with its dual status as both a precious and industrial metal, is now poised to dazzle investors and traders alike.

Technical Perspective on Silver’s Journey

A closer examination of Silver Futures charts since August 2020 reveals a captivating narrative of consolidation and breakout patterns. The price action during this period has been characterized by a flat, range-bound movement, with silver oscillating between highs of Rs 77,949 and lows of Rs 51,857. This established a clear pattern of lower highs and lower lows, typical of a consolidation phase in anticipation of a significant breakout.

The turning point in this storyline emerged in early May 2023, when silver prices surged to Rs 78,292, eclipsing the previous high and signaling the onset of a new impulse wave. This critical moment marked the breach of the long-term continuation pattern’s neckline, a development that traditionally heralds the start of a significant bullish trend.

Following this breakout, silver entered another consolidation phase, demonstrating a healthy retracement that adhered to the 50% mark, forming a series of equal highs and higher lows. A trendline connecting these higher lows serves as a testament to silver’s underlying strength and provides a robust support level for the metal’s price.

The Anticipated Breakout and Bull Run

Recent weeks have witnessed a combined surge of over 11% in silver prices, accompanied by strong momentum indicators. Currently flirting with the breakout trendline, silver stands on the cusp of a major bullish reversal. A weekly close above Rs 78,300 would confirm this anticipated breakout, setting the stage for silver to embark on a journey towards Rs 1,00,000—a potential gain of more than 25% from the breakout point.

The recent price actions and the technical setup eloquently echo the sentiment captured in the Hindi slogan, “Gold to bas jhanki hai, Silver bull run to abhi baaki hai,” which translates to “Gold is just a glimpse; the silver bull run is yet to come.” This slogan not only encapsulates the bullish outlook for silver but also highlights the metal’s imminent rise to prominence amidst the commodities market.

Disclaimer: This blog has been written exclusively for educational purposes. The securities entioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.