Few people seem to have believed me when I wrote that was likely to disconnect from the rest of the precious metals sector due to its unique fundamental situation.
And yet, that’s exactly what we see.
Silver Breaks Away
Silver is making new highs as I’m typing this, and it’s still a few dollars away from its nearest target area.
Its upper border at about $70 is confirmed by more techniques (Fibonacci extensions and the lines duplicating the sizes of previous rallies) than its lower border, so it seems that the white metal will rally by another $4 or so before reversing.
Will this be the end of this rally? That’s quite likely, based on what’s going on in the USD Index, the general stock market, and the terrible – and worsening – situation on the jobs market.
However, let’s keep in mind that silver has multiple individual reasons to move higher, so there could be…
