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This week, we’ll look at medium-term charts of Silver/Euro and Silver/FTSE.
First, Silver/Euro shows us a horizontal channel consolidation that began during the Silversqueeze following the Covid low in 2020. Investors were left frustrated as Silver/Euro went nowhere for four years until it finally broke above its channel just last year. Prices went on to form a wedge just above the channel, which it has since broken out of and backtested. We can also see the wedge itself is merely a breakout and backtest of the channel. This is all healthy bull market behavior, and price indeed looks to be sitting on a launchpad for its next move higher.
The next chart is a very interesting look at Silver/FTSE. I’ve shown you various ratio charts in the past that suggest metals may soon outperform stock markets in a big way, and this chart is no exception. Evident in this chart are the two arc bases of duration. Notable is that silver went on to outperform the FTSE by 60% in an extremely impulsive manner when price broke out of its first arc during the 2020 Silversqueeze. As price approaches the apex of its second arc, could a similar outperformance not be far behind?
