COMEX silver futures are displaying a textbook bull flag continuation pattern on the weekly chart, following the powerful rally from $28 to $32 that occurred in July and early August. The flag pole measures $4, and the consolidation over the past six weeks has formed a clean downward-sloping flag channel with well-defined parallel trendlines.
Adding the $4 flag pole extension to the breakout point at $31 yields a measured move target of $35 per ounce — a level not seen since February 2013. The weekly RSI (14) is at 64, providing room for further upside before becoming overbought. The MACD has generated a fresh buy signal with the signal line crossing above zero for the first time since April.
The gold-silver ratio, currently at 76.5, has broken below the 200-day moving average of the ratio for the first time in 2024, signaling a potential regime change in the relationship. Historically, when the ratio breaks below its 200-day MA from extended high levels, silver outperforms gold by an average of 15% over the subsequent six months.
