We alerted readers early Thursday afternoon as the price of silver had plunged down to $74 that a HEAD AND SHOULDERS BOTTOM was potentially developing on the silver chart.
4 days later & the right shoulder on the pattern continues to develop.
The right shoulder low remains HIGHER than the left shoulder low, which is classically very bullish.
Silver’s pattern is now in the “right shoulder” phase and is coiled right below the neckline, exactly as it should be before a breakout.
A decisive daily or 4h close above the neckline would confirm the pattern & breakout.
BREAKOUT TARGET:
Standard measured-move calculation for an inverse head & shoulders:
Measure the pattern height = Neckline level (above the head) - Head low ≈ 96.00-72.00 = 24.00 points
We then add that height to the breakout level (where price closes above the neckline).
Because the neckline slopes down slightly, the right-side breakout level will be a bit lower than the left peak - roughly 87-92 depending on exactly when it breaks & how the neckline is drawn.
Projected target = Breakout level + 24 ≈ $111 - $116
$111-$116 is the MINIMUM technical target once silver closes above the red neckline on a 4 hour (or higher) timeframe with volume & conviction.
The small zoomed red box we drew shows the tight consolidation right under resistance - typical “coiling” before the breakout leg.
The bullion banksters love to attempt to “paint the tape”, but silver is now completing a TEXTBOOK inverse head and shoulders pattern right now, with a clean measured target in the $112 - $116 zone on a confirmed breakout.
Considering the fact that nearly everyone is now expecting silver to crash further & test $54, sentiment is now ripe for a short squeeze to the upside.
Combine current sentiment with:
Shanghai’s silver shorts needing to close their positions by Feb 27 (along with COMEX March Silver First Notice Day),
the USDX breaking below significant long term support, and
gold nearing the completion of a consolidation triangle, & everything may be aligning for a coming EXPLOSIVE MOVE in silver.
