JESSE COLUMBO: A Key Pattern Is Forming in Silver!

Although silver has been quiet in recent weeks, leaving investors puzzled, a bullish chart pattern now appears to be taking shape—indicating that the rally may soon resume.

For context, both gold and silver have been in healthy sideways consolidations, taking a breather after strong runs earlier this year. This kind of pause is typical in financial markets, especially during the quieter summer months when trading activity slows as traders head off on vacation. Let’s take a closer look at the charts.

About a month ago, silver finally broke out above two key resistance zones that had capped its gains for the past year: first the $32–$33 zone, and then the $34–$35 zone. This breakout is a strong indication that silver’s bull market is gaining momentum.

While silver has spent the past few weeks in a healthy consolidation, it has managed to hold onto its gains — a very constructive sign. I’m now watching for a breakout from this consolidation, which I believe will set the stage for a rapid move to $40 an ounce and beyond.

Interestingly, if you take a closer look, the recent consolidation actually resembles a classic bull flag pattern — exactly what you want to see in a strong uptrend. This pattern indicates further gains are likely on the horizon, though a decisive breakout to the upside with strong volume is needed for confirmation.

It’s also worth noting that silver often rallies in this step-like fashion, moving from one technical pattern to the next.

For example, last month’s $4.50 per ounce surge was preceded by a well-defined triangle pattern that formed in April and May. The current bull flag appears to be continuing this pattern of behavior, making it an exciting setup to watch for us silver bulls.

CONTINUED…

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