Silver is back on the track

With a view to the recent past of the SLV (iShares Silver Trust) ETF, the uptrend which began at the March lows feels and behaves enormously powerful.

In the very big picture however, and this is just an objective observation, nothing else as an above average next multi monthlong countertrend cycle regarding time and price was triggered at the fresh secular bear market lows of March 2020. The underway rally cycle that began at the March 2020 new secular bear market lows should continue for another 4 to 5 weeks.

SLV ETF looks set to reach and work through the 19$, while the silver futures contract now looks set to reach 20.50$ at the end of this multi-month rally cycle before the next severe correction is expected to start.

Above is a weekly GUNNER24 Up Setup starting at the # 1 // 2020 Low // next lower secular bear market low. Current bear market low, that started at year 2011 and 50$, is at 10.86$.

Since it is a so-called spike low, where extreme bear market exhaustion probably kicked in, the current upward movement is V-shaped and an unusual steep one. Therefore, it is allowed to say that a strong rally cycle is triggered at this years bear extreme.

Setup isn´t adjusted correctly upwards actually, cause I want to show you where most important rally booster can be anchored in the setup. A main reason why SLV is now again on fire is the recent uptrend behaviour at the “2020 Rally Angle”... red circle icon shows the anchorage point of the 2020 rally ruler what is a natural and mathematically one, so a rally support which the mass of market participants respects obviously. At the moment the 2020 Rally Angle is actually radiating support on an annual basis, as it originates from the absolute low price of this year.

The 2020 Rally Angle support energy and its magnetic effect is now responsible for the fact that the last 4 consecutive higher week lows arrived exactly at this major rally support. Yes, and that in addition the last test of the 2020 Rally Angle at the low of the week pushed SLV to fresh year highs (17.74$).

Since we are also repetitive pattern traders, we can now fully speculate on this:

A) the 2020 Rally Angle should continue to support the price over the next few weeks after the new year high and highest weekly close in 2020.

B) 2020 Rally Angle should continue to chase the price upwards into some more higher annual highs - until it fails to support on weekly closing base.

C) Last but not least, the 2020 Rally Angle offers nearly perfect and safe long-entry into SLV ETF/silver if getting tested at 17.29$ in course of the next 5 trading days.

My trade recommendation:

==> Go heavy long SLV if at 17.29$ till next week Friday! And expect this to happen afterwards:

==> In the weekly chart I have two valid GUNNER24 Up Setups for SLV. Both start at # 1 // 2020 Low. First we pull the weekly up setup into this important 2020 rally intermediate high:

Weekly 5 Candle up. 5 is Fib number. Top of # 5 marked the first important intermediate high of the 2020 rally as it is a spike high, signaling a shortterm bull exhaustion. The rally starting at # 1 with next week candle will be at candle # 18.

Please recognize that the opening auction of rally week # 17 skipped the main resistance area of the 1st double arc area. This bull event raised some more bull power and as a consequence market reached new highs & highest week close in 2020 and thus this # 17-close SLV managed to close far, far above the 1st double arc and for very first time above that weekly threshold, that was main resistance area for about 6/7 weeks.

Upper line of 1st double arc is now unusual very strong future arc support in the weekly chart.

A new daily breakout rally that began at this week bullish opening auction should continue into fresh activated weekly GUNNER24 Uptarget of lower line of 2nd double arc.

This fresh activated weekly SLV uptarget – after this week recognizable mighty bull power – usually will be worked off quickly and without much disruption as the rally cycle starting at year low now seems to be oriented to a 21/22 week candles lasting run. 21 is Fib number, possible turn number and the 22-1 is also 21 possible Fib turn number/next due important time magnet for this rally cycle.

==> First imminent weekly SLV uptarget is the lower line of 2nd double arc above. The imminent price target is the 18.65$, there and then where price and time define obvious, imminent future uptarget resistance magnet formed by:

1. Lower line of 2nd weekly uptarget. 2. 2020 Rally Angle what intersects lower line of 2nd for likely due rally weeks # 21/ # 22 at the 18.65$.

This next weekly 3 Candle up setup is another possibility to illustrate the power of the newly triggered rally phase: