What an amazing rush we've seen for Silver over the last month. My last post was about how Silver Perfectly Formed a Cup and Handle on the chart and within days of that post it had broken out to a new high, kicking off a rally of over 50% in the space of just 30 days. For long term stackers like myself it was beautiful to watch and in many ways it felt long overdue to me, but was it too much too soon? Probably not, but lets take a look at what the price action is saying anyway...
Source
Above is the 4 Hourly Chart for Spot Silver. I do like this timeframe and it's the same one I used to point out the Cup and Handle last month. You can see the breakout at the previous high around $54 USD at the end of November and the rally since has been pretty strong but also smooth. There is a day gap there for Christmas and then we see an extra burst after Christmas where the price put on a 10% gain in a single day. However, from there I see a new signal that I think is worth pointing out.
The final green candle which marks the high is commonly identified as an Evening Doji Star. It's where there is a sharp move higher and quick retracement so the candle itself is short but the wick is much longer - to the upside. It is a common reversal indicator and while I am still pretty bullish on Silver I do respect indicators like this especially when the upside move over the previous month has been so strong. A consolidation or correction would not be any surprise.
What's especially interesting is that after the initial pullback we've seen another attempt to move higher and a 2nd Evening Doji Star - just incase you didn't see the first one. Silver has formed a lower high there and the chart here could be showing us a bit of a Bull Trap. At time of writing we are still slightly above the $71 USD mark which is where the first retracement arrived and we are again at a key decision point on the chart where a move lower through that level could be confirming that a consolidation or correction may be occurring.
Long term I am still bullish on Silver because of its strong fundamentals and we've seen some spectacular price divergence between the Silver markets in the East and Western worlds which does seem quite ominous. That's probably a topic for a separate post. Regardless, there are certainly shenanigans afoot and the only thing I am confident of is that we're going to see some more volatility here while the Bulls and Bears fight it out. For now I am being cautious and just watching the price action closely.
I'm looking forward to seeing where silver goes in 2026.
Marketing metals had gone up a lot, now they will definitely come down for some time and then start going up again.
What a roller coaster ride!
The fundamentals haven't changed much, when they do its in favor of prices going up more. Checking Shanghai...says $80.64 therefore silver should be on planes flying out of New York to Shanghai...🤔 unless there is NO silver inventory.
I'm still buying silver, the CME bumping up margin fees 3x in two weeks says something. They did that to the Hunts.
Keep on Stacking.
!PIMP
Yes, good point. The changes to the CME margin requirements is also a big story and may be the real reason why the rally terminated abruptly. That's another topic worthy of its own post too :)
I'm wondering what next year will bring. The stock market is (finally) starting to look weak and Trump may have used up all his leverage to keep the bubble going. BTC is looking weak. Alts are dead, with the leading alt, ETH, about to fall below the 200d. The long awaited crash may be nigh. The explosion in risk-off assets like metals makes sense given the condition of the other markets. I think this pullback is more the bears getting nervous. When the dust settles on the holidays, silver may start going back up.
Alternatively, if the metals start to correct a little then that might rekindle the capital flows into crypto.
2026 is going to be interesting. I was expecting a crash in 2025 but it never came. Somehow the can always seems to get kicked down the road.
Silver is no where near done!!!! JP Morgan, HSBC are doing everything in their power to get everyone away from silver. Samsung, Tesla and two medical supply manufacturers are buying hard while the prices are getting smashed. Tesla and Samsung are trying to buy silver mining companies to ensure supply. Silver is going to explode before the end of 2026. And that’s not including if any geopolitical events occur. If that happens buckle up, there won’t be any physical silver on the market to buy.
Spot price is currently sitting at just under $73 an ounce as I type this. SD Bullion, Apmex and JM Bullion have silver rounds on sale for $80 and change per round. That tells you that the spot price is way off.
I tend to agree. The tailwinds for Silver are immense at the moment. Yet markets rarely move in a straight line. After the run we've had in December a short correction or consolidation would not surprise. The last consolidation was done and dusted in about 5 weeks. My gut feeling is that this one could be a lot shorter but I'll let the price action tell the story.
I haven't received my rewards for delegation since last month? Have you stopped paying it? I have checked under @ssg-community wallet that you are paying to other users as usual. What happened can u explain? Look at this image.
Our previous correspondence was all on Discord. I messaged you about this on November 10. Have you stopped using Discord? Happy to continue the conversation with you on there.
Yes I don't use discord anymore. I am not very familiar with it. I will check now.