Silver has broken its bear market downtrend line to the upside suggesting the start of a new uptrend.

The formation that it is breaking out of is known as a descending wedge, one of the characteristics of a descending wedge is that they tend to quickly return to where they start, that would be back to 20 dollar an ounce.  The pattern is also a form of a triangle which means is could be either the completion of the first wave of a silver bear market or the 4th wave of a great silver bull market.  I tend to favor the idea that silver and gold are in a great secular bull market but in either case the formation suggests a good move for silver coming up.

What other evidence do we have supporting a good move in silver....

1) The daily Santo 4 study is showing a powerful positive divergence on the last two lows.

2) The precious metals have a six year cycle that bottoms in 2008 and we are almost out of 2008.

3) You cannot buy the metal under 15 dollars an ounce.  If you don't' believe me goto www.ebay.com and search for silver and price what silver is going for.

4) And of course let's not forget the government and Fed have open the printing presses wide.  They might not cause inflation today or tomorrow but it is coming, you can't increase the Fed monetary base by 78% year over year  (and accelerating)without it eventually pouring into inflation which are the precious metals bread and butter.