Bullish breakout in Silver and strength in Crude - What lies ahead?
- vivekkhemka
- Jul 13
- 2 min read
Silver has broken out again last Friday, July 11, above short term resistance at $37 to a new multi year high above $38. When taken in context with the earlier breakout in the first week of June, Silver looks all set to continue its upward march to a technical target close to $41.4. Look at the weekly chart below.
What is driving this strength?
🔶 Increasing industrial usage - Silver is essential for solar panels, electric vehicles, 5G tech, and AI hardware. Demand is outpacing supply, creating a structural deficit—over 200 million ounces short in 2024, and continuing into 2025.
🔶 Macro & Monetary Tailwinds - Central banks (including Russia’s) are buying silver for reserves, a rare move that boosts its monetary credibility.
🔶 Gold Silver Ratio - Stands at 91 after the recent advance, still higher than a historical 60, suggesting silver is still undervalued relative to gold.
Silver looks headed the gold way, still far away from its historical high at $49.45 reached in January 1980.
CRUDE has been acting strong in the last 10 days giving a series of bullish breakouts followed by a strong Bullish Engulfing pattern last Friday. Look at the daily chart below.
July 2 - Breaking strongly above a narrow range of 6 days
July 7 - Breaking above a 1-2-3 bottom pattern
July 11 - Strong Bullish Engulfing pattern that closed just below the highs of a small range. Breakout looks imminent.
The bullish sentiment seems to have resumed in crude after a big fall on the 23rd and 24th of June following the weekend US attack on Iran, and the subsequent Iranian response, which was perceived as weak.
If the breakout happens on schedule, the next logical target seems to be $72, the next resistance.
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