Silver's Range Expansion

"If there is a sudden range expansion in a market that has been trading narrowly, human nature is to try to fade that price move. When you get a range expansion, the market is sending you a very loud, clear signal that the market is getting ready to move in the direction of that expansion." -Paul Tudor Jones

The monthly chart for the silver metal ETF, below, illustrates the similarities between now and the last time we saw an exhilarating run-up in the precious metal back in 2010-2011. Back then, multi-year triangle consolidation breakout spawned the massive breakout previously, as periods of prolonged compression inevitably lead to an explosion, one way or the other. 

This time around we also have a triangle breakout underway, also of the multi-year compressed variety. And just as was the case with silver back in late-2010, there are plenty of skeptics about the sustainability this time around for the move in silver, among other precious metals and miners. 

But that conjures up the Paul Tudor Jones' quote, above, as a good reminder about range expansions and the nature to fade them. 

Put another way, the silver move figures to be in its infancy, only this time around compared to 2010/2011 there are even more macro tailwinds for silver, be it geopolitically, monetarily, and fiscally.