Jagdish Agarwal | Dinodia Photos | Getty Images

There was a simple and profitable trade from early 2013 until recently; Traders watched the behavior of silver and then executed the trade in gold because silver price behavior led gold's by about 5 to 10 days. But those times are over. The price relationships on the gold price chart look similar to the price relationships on the silver chart. Traders are asking if the smart trade is to now look at gold, and then execute in the silver market. If this reasoning is correct then the silver price should be poised to replicate the strong breakout we have seen with the gold price.

The most important similarity is the fan trend-line pattern on both charts. The silver chart has three fan trend lines versus the five fan trend lines on the gold chart, although the fan pattern in silver is not as strong. The second similarity is the relationship with the Guppy Multiple Moving Average (GMMA) indicator. The long-term GMMA group of averages is beginning to compress, which is an early indication of a sustainable trend change. We also see a similar pattern of test and retest as the short-term group attempts to move above the upper edge of the longer term group of averages.