By: Jeff Cooper

Hit and Run Bonus Report: May 19, 2023

Silver, Is This It?

A daily SLV shows a breakout (blue) with a Ghost Line (purple_ being hit at 23.50 in April followed by a Test Failure... a Soup Nazi sell.

The current pullback accelerated when SLV gapped down last week.

However, now SLV has dropped to the open gap from the Breakaway Gap in early February.

Note that when that gap was offset, SLV ramped.

Is this it?

Well, the current decline is backtesting the breakout line (blue).

A low in this region is a 3rd higher swing low.

W D Gann wrote that fast moves often come from 3rd higher lows.

A weekly silver defines the current uptrend channel from March 2020.

Note the recent high ties to a declining tops line (green).

When SLV clears this long term tops line it will trigger a Rule Of 4 Breakout.

Note that SLV triggered an initial Rule of 4 Breakout (blue) and is backtesting that line currently which also ties to a backtest of its 20 week moving average for a weekly Holy Grail buy.

Nice Combo setup.

SLV is in the weekly Plus One/Minus Two buy position.

A low next week below this weeks low turns the 3 Week Chart down. If the trend is strongly up, that will define a low…but, we could already be there.

Pulling back the lens to look at the really big picture, the monthlies reveals why I think silver is going to all-time new highs (north of 50)

Note the massive Cup & Handle (green)

Breakage above the declining blue tops line will trigger a big Rule of 4 Breakout.

The combination of the two will see an explosive move.

When will it start?

Well, 90 days/degrees from the important early March low is early June.

That should be a point of recognition.

The March low was 180 degrees from the early September low. So early June is 3 squares of 90 degrees in time.

The silver express is getting ready to leave the station.

The recent breakout in April created a lot of excitement.

Many of those shallow pockets have been flushed out.

My take is this pullback has disabused the crowd of their bullishness and has pulled back the rubber band for the real deal….with few willing to chase it this time around.