The price of Silver has gone ballistic so far in 2025, currently up over 83% since the 1st of January. However after it's stellar run where it peaked back in mid-October it's pulled back a couple of times and looks to be consolidating. Was it over-bought, or did it just need a rest before going higher still? Having a closer look at the chart there is a fairly distinct pattern that can be seen...
This chart pattern is known as the Cup and Handle because it basically looks a bit like a teacup. The key to this pattern is the rounded bottoms of the lows and the spiked tops at the highs which indicate high volatility and euphoria at the highs with the sellers becoming quickly exhausted while it corrects.
This is generally considered to be a bullish pattern and indicates that price is going higher, but as I look at this chart it almost looks TOO perfect. I have to admit that I have never seen a Cup and Handle look this perfect. Even the textbook examples tend to have a bit more "Noise" than this. Could it be a trap? Absolutely. Long term stackers know that Silver is one of the most manipulated markets in the world.
I actually think there is a chance we might see a 2nd even smaller handle but one thing is for sure - we are going to find out pretty quickly. This is a 4 hour chart so I'd say in the next day or 2 there is a very high chance it will go significantly higher if it can take out the top from mid-October. Keep an eye on the silver price stackers. This could be a fun one to watch play out and if we do take out a new top I'm sure we'll be seeing lineups at the local bullion stores again next week...
DISCLAIMER - This is not financial advice