This Inflation-Adjusted Silver Chart Tells An Interesting Story / Commodities / Gold & Silver 2020

This inflation-adjusted silver chart (frommacrotrends.net) tells an interesting story:

The levelaround $18 appears to have been very critical, especially since it is the 1920and 1968 inflation adjusted high.

It was an important level to cross on theway to the 1980 high, evidenced by the fact that it came back to that level(after it blast through in Dec 1973) before setting off to that all-time highof $118 ($50 in nominal terms).

It sealed the silver bear market in 1984when it broke down below the line, and the again in 1987, when it failed rightat the line.

The recent rally also really ignited when itpassed this important level. Based on the fractals that are present, I have nodoubt that the recent cross of the $18 area sets silver up for a rally thatwill easily surpass the $118 inflation-adjusted high.

I have marked two fractals A to F (bigfractal) and a to f (small fractal). When two fractals like these appear inthis order, and in this manner, then the probability of taking the high of thebigger fractal out is really high.

Where the big fractal (A to F) had a decentrally after its low (F to a), the small fractal will likely have a huge rallyafter its low at f (and of course we are now in that rally). So, a small rallygoes with the big fractal and a huge rally goes with the small fractal.

Confirmation of this comes when price takesout the level at point a (just higher than $50).

Short-term

Below, is a silver chart with a Pitchfork:

There is a very specific reason why Iapplied a Pitchfork here, and it has to do with the second chart in this piece.

Notice how the recent rally stopped exactlyat the line. It is likely going through the line very soon. It is gunning forthe top of the Pitchfork, and this will likely not take very long.

For more on this, andsimilar analysis you are welcome to subscribe to my premium service. Ihave also recently completed a Silver Fractal Analysis Report as well as a Gold Fractal Analysis Report.

Warm regards,

Hubert

“And it shall come to pass, that whosoevershall call on the name of the Lord shall be saved”

http://hubertmoolman.wordpress.com/

You can email any comments to hubert@hgmandassociates.co.za

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