Silver Breaks Out of Seven-Month Falling Wedge

Silver prices are on the move after months of correction, breaking out of a seven-month falling wedge. According to Katusa Research, this is a significant development that could be bullish for investors.

The metal's price has climbed from around $63 to just below $70 per ounce over the past few days, extending a recovery that started from the July low near $55.50. This breakout comes after months of compression and a series of lower highs and lower lows.

A falling wedge is generally viewed as a potentially bullish reversal formation, indicating that sellers are losing control. However, it's essential to note that this is not yet a confirmed long-term reversal, and silver needs to remain above the former wedge resistance for the technical case to strengthen.

The next major question is whether the silver price can turn the area around $65-$70 into support. If it can, the chart becomes increasingly interesting, with potential targets around $75 and the $80-$90 region.