Are Breakouts important? You bet!!!
On 8/18 I highlighted the fact that an ascending triangle was forming in Silver and 65% of the time this leads to higher prices (see post here) . The play was to follow the breakout of this pattern, in the “Hi Yo Silver and Away we go” post. Gold is doing great, yet look what happens when a breakout takes place in an asset class that is performing well!
Silver is facing 30-year Fibonacci resistance in the chart below…
Silver has rewarded investors with a 14%+ gain in the past 30 days!!! If you think that is sweet, you haven’t seen anything yet, compared to what could happen on a “BREAKOUT” of this pattern!
If you don’t own Silver already…climb in the saddle on an upside “breakout!” For those with some nice pocket change already…keep a 5% stop on SLV.