Along with gold, silver's impressive price gains in February have been in the news recently, and many articles have started to appear suggesting that a potential pause in silver prices may now be underway.
In this regard, today is a very timely day for a review of the annual silver price chart from an EchoVector Price Analysis Perspective for the occurrence of possible annual price symmetries that may be forming, and this formation's trading implications.
In this analysis I will focus on a daily action price chart of the SLV ETF as our price chart proxy for silver metals market price action.
(Left click on image of chart to open image in new tab. Right click on image opened in new tab to further zoom EchoVector Analysis chart image illustrations and highlights.)
Looking at the chart above, we can see a very significant symmetry emerging in the key active echovector running from the 2012 price low echo-back-date on Thursday, June 28, to its 2013 counterpart low on Thursday, June 27, and in the corresponding active echovector -- with its parallel momentum -- running from the period of March 1, 2013, to March 1 of this year.
Looking at this past week and the yellow forward tradebox highlighted, we find a key corresponding tradebox in place last year in the same period.
The trade price box that followed March 1 last year, highlighted in yellow, appears to be setting up again this year. It runs from the beginning of March until silver's price 'broke down' last March 28. This year's set up is currently in remarkable coordination with last year's key active annual momentum echovector established from the 2012 and 2013 summer lows.
This detected echovector price symmetry represents a potentially interesting swing trade assessment starting this week, which goes forward to the end of March.
Price strength in this yellow box that counters last year's activity, and in the several weeks that follow, or silver just holding up in this price box equivalent level through mid-April, could produce major upside counterclockwise pivot pressure in the annual echovector and propel SLV easily up to the $24 range and possibly to the $26-$27 range before the year is over. This is the bullish scenario. However, this scenario would require some relatively heavy lifting support during the coming otherwise cyclically difficult spring quarter.
Thanks. And good luck in your silver investing and trading!
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.