Silver is flying.
It’s surged 31% over the past month.
If you’re wondering why this is happening, it’s quite simple. Silver just broke out of a huge base.
Take a look at the chart below. This base is nearly 15 years in the making:
Source: StockCharts
This is a big deal.
You see, us traders have a saying: “The bigger the base, the higher the space.”
In other words, the longer a stock has been consolidating, the higher it should go once it ultimately breaks out.
It’s a very simple concept. But it’s extremely effective.
Identifying stocks climbing out of big bases is one of the best ways to locate big winners. So, let’s dig into a few of my favorite bases in the market.
Let’s start by looking at Tesla (TSLA)...
TSLA is arguably the most talked-about stock in the entire market at the moment, and for good reason. It’s just starting to climb out of its four-year base:
Source: StockCharts
But that’s not even the best long-term setup on my radar…
First Solar (FSLR) is on the verge of breaking out of a massive base:
Source: StockCharts
And Teradyne (TER) recently broke out of a massive cup-and-handle pattern that dates all the way back to the dot-com bubble:
Source: StockCharts
Just understand that these are long-term setups.
Before entering any of these names, you still need to find an entry point on their daily and weekly charts.
Justin Spittler
Chief Trader, RiskHedge
