Axis Sees Silver Cup-and-Handle Formation Spanning 45 Years

Silver prices have been on a wild ride lately, trading around $67 per ounce after a volatile stretch that saw it recover from mid-year lows. However, trader Axis is looking at a much larger picture, analyzing a long-term silver chart that goes back to the 1980s.

The chart shows an enormous cup-and-handle formation spanning roughly 45 years, with silver finally breaking above its historical highs earlier this year and surging to a record above $120. The handle is formed by the long period of lower prices after the 2011 rally toward $50.

Axis' analysis argues that the multi-decade breakout can potentially become long-term support, making roughly $50-$55 one of the most important areas on his chart. He warns that secular formations can take years to develop and advises investors to 'build the base,' respect silver's volatility, and allow time to do the work.

The trader's projected path shows silver spending considerable time building a new base before eventually accelerating higher. While the upside projection is eye-catching, with an illustrative long-term path that takes silver through $100 and beyond its 2026 record, Axis explicitly states that this is not a forecast but rather an illustration of the underlying structure.

The biggest risk to the silver thesis is that the metal's breakout above its historical highs eventually proves unsustainable. A sustained breakdown beneath the former multi-decade breakout zone would weaken the cup-and-handle interpretation considerably.