After Friday’s monster $1 rally of nearly 5% in silver, and $20 in gold, the metals are again breaking out to the upside on Monday’s Asian open, just as we forecast on this weekend’s Metals & Markets.
Silver opened Globex trading with a vertical move, and after consolidating around $21.70, is spiking again on the Asian open, and looking like it wants to challenge the $22 level this evening.
Silver spiking towards $22:
Gold is attempting its 2nd test of $1325:
Look for follow-on buying to continue throughout the overnight Asian and London sessions as momentum buyers and algos board the train.
After 2 plus years of enduring relentless cartel take-downs, particularly on Sunday market opens, the current sustained bull move is a breath of fresh air to PM investors.
While we caution investors to be on the watch for the cartel to attempt a major capping effort by mid-week, if silver takes out $22.50 to the upside in the next 48 hours, there is the possibility a substantial short squeeze could quickly develop.
As silver’s long term chart clearly demonstrates, it appears a classic bottom has been placed at major support of $18, which marked the top of the first major bull move of the current secular bull, and also served as a major consolidation point for the metal in its move off the 2008 lows near $8.