What Happens To Gold And Silver Next? Look Out Below?

Ok,,,wanted to slip in a late night note before the week starts (oh wait its Monday already lol)

Gold and silver are doing their usual thing,,, sell off, sell off hard, then stage a counter trend. Next thing everyone starts "gold looks good" blah blah blah and "the bottom is here, buy now".

I always sit back and patiently wait for the clues to stack. I am never in a hurry to make a move; I patiently wait and observe, I know if its real, there will be plenty of time to get in and I'll see enough price action to validate it. Its hard yes; unlike what you are told by the media, MOST of trading is boring and a lot of churn with nothing really going on... thats a real trading day, week, weeks and months. Anyways a bit off topic but the point is, do not be a hurry to buy and please do NOT feel the train left the station... we have seen these counter trend moves before. IF this is a real move that is saying a floor is in, there will be plenty of clues to confirm and time to get in.

So ok, gold and silver are bouncing as we said a minute earlier. For gold, it broke out after a 2 week range of consolidating and moved higher into a new range. Breaking 1200 is pretty much a given here. Don't be surprised by a move into the 1250's. Take it day by day... that would be our first target. If it gets there, we can evaluate again whats next.

Silver, also stages a rally of sorts. Moving out of the lower end range as well... lets see if 17 can be bust first. That would set it up into another range.

As always, we will take each day by day. Better to see how each range or level acts, as it each day goes by clues will be given as to how strong each move is in either direction.

Also, remember, we still remain in a DOWNTREND. Silver and gold remain guilty until proven innocent and as we have seen many times in this downtrend, gold and silver have staged some pretty powerful counter trend moves...which up to this point, none held.

Keep an open mind and watch price, as it NEVER lies.

UP-DATE

COMEX DEC 2014 SILVER hits $15.96

Yes, I am a BEAR

My sincere wish is to be able to buy {CULL+} Morgans and Peace below $10-12.

Looks to me like more of the same...

That is-

gold and silver hit a yearly low, tumble more. Then they get a bounce, followed by a vicious counter trend move, filling gaps, breaking the range, get into the upper range.. and then proceed to gap down again..

wash, rinse and repeat.. etc etc ET AL

This is why I always say that let gold and silver prove, by their price action and with time, that the moves they make are real and that they will hold.

All commodities are stuck in a big powerful downtrend, and with energy, that one is now showing its strength to the downside. In reality oil prices had shown their weakness 6 months ago or more.

For now, it would be interesting to see how low gold and silver get pushed here next week. I would be looking to see if we touch once again the lower end of the range or do we break the yearly lows once again. Breaking the yearly lows will bring fresh lower prices for silver and gold.

yup can I ask you your opinion as do you think the holiday seasons effect prices?

@woodywood

ehhhh in my experience, no, no real change either way. About the only thing in terms of seasons would be periods of seasonality for commodities, including silver and gold, "sometimes" that can change an assets direction, including silver and gold. But right now we arent in the period..

but the biggest thing to remember is that price action always overrides seasonal historic trends, in any asset.

So to me, the dump we saw today, I see that as just gold and silver having reached the upper end of range, it reached it, and the sellers and selling kicked in, knocking it back down. This a pretty common and familiar pattern.

Gaps arent a pretty thing either, as they can represent the unstable and volatile conditions currently present.... mind you some gaps arent bad and hold... sometimes they are filled and rejected, and other formations are present.

But I would put the gap today as just showing how volatile and unstable gold and silver are. They are in downtrends and are susceptible to violent moves in either direction.

If we break it down even further, there are traders who are just enjoying these extreme moves. Depending on their time frame, some might be buying it right here, others added to a position short or already were expecting this move down...

Well I must say some trends never seem to end--LOL!!

WOW Gold dropped $40 and Silver is NOW below $15, And there I was thinking $15 was the bottom for Silver.
Silly Me

@domain555

Yes, thats very true. The holidays, wow its very BORING... and also July and AUgust,,,

that said, to me, that link to that article describes what I see and deal with. Trading is super tough and hard. Its not what the public thinks,, more traders blow their accounts up than the public knows.

Its a tough biz, the pay is great but you really work to get your money.

If you are patient, have a plan tho, and stick to it, and manage risk, tho, you can have a long career and make many many many many times MORE than one loses.