Silver Pops Again : Is a Fresh Cup Forming?

The Precious Metals markets have kind of been consolidating since hitting euphoric highs back in January this year. We did see an initial sharp sell-off back then but support was found and dedicated stackers would have been watching with interest to see how the dust was going to settle. Today I think we are getting a bit of a picture about where we are up to....

For those who haven't been paying attention the Spot Silver price has popped by about 9% in just the last 12 hours after it had been muddling around at the key $80 USD level. It's the sort of big sudden move that can signal a breakout except that we haven't really seen a range of support and resistance that would normally be a reference to break from. Instead I think this might be more of a psychological breakout. Having been in the doldrums a little over the last few months this sharp impulsive move up does look like an optimistic break from the recent mundane sideways action.

What does it mean? Hard to say with certainty of course but as I am looking at the daily chart above it does look to me like we could be about to see a fresh cup forming. This is a similar setup to the one that I called out last year Silver Perfectly Forms a Cup and Handle and while it's early days there is a distinct "rounding" of both the highs and lows since January.

If I'm right then we might be about to see another sharp run to the January highs of $120 USD which could be late June / July followed by another short consolidation before exploding higher again. It does sound a little bit fantastical to try and predict a massive move like this but long term stackers have been expecting silver to wake up for decades and the last rally was no surprise. I don't think the next one will be either.