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

I don't believe its been this low since 2009. Here comes the pain unless you are short.

Wow silver to 14.10--not too many futures traders would have stops lower than that. Blatant extremes in price are often are met with violent reactions--could soon be Mr. Shorty's turn in the hot seat.

Very interesting price action, much of happened in the over night futures market.

I will say this- sometimes, important events in price happen over night, in the futures market.

Seeing the flush yesterday in silver, fresh lows being made and then the reversal, could be a sign of a change coming. I have seen this pattern several times where prices flush overnight, the futures market pushes lower and then into the opening session the next day, the trend changes, price changes.

I will be watching for follow through to see if silver has finally stopped its move lower, is this a temporary floor or finally signs of trying to stabilize. watching and waiting, follow through will be key.

@MontanaCMR

its been a wild one today... the action overnight was interesting. but all across the board there are many crazy gyrations going on...

be interested to see if the overnight moves hold on silver going forward, time will tell.

Blink and it changes.

I have seen this kind of price action before and on some occasions it has turned into an important turning point in a certain asset or assets.

I remember trading when the Japanese earthquake happened, then we had the oil spill in the gulf I believe it was some months or perhaps around the same time... in any case I do remember it being around the Japanese earthquake and a lot of things were roiling the markets... kind of like when it rains it pours... and I remember finally months after all this was happening it was during the week and we had a major flush in the futures markets, this time it was the indices, and they were crushed in the futures market.

The next morning, I wake up get ready for the cash open, and instead of being down I forget now how many points on the SPX, we actually were going to open flat or slightly positive,,, and the market never looked back,, sure it dipped around but it just ran from there,, that night was an important night... and it changed the course of the markets.

I have seen this sort of overnight action in the past in other instances... and going off memory, what happened in silver and gold last night, was just like that. SO, we might have gotten a important change in course here in my opinion.

IF this is real.. and significant, we should see silver and gold build off of this and grind higher. IT wont be like a straight shot to the moon. But there should be some sort of price action that moves silver and gold higher, and the give backs should lessen in terms of price.

we will see.. its going to be very interesting to sit back and watch,, the clues will add up,, all you have to do is be patient.

@cblue

well,,,

I was taught be a student of both PRICE and VOLUME.... but I'd say in the past 5 years.... moves been made more on price than on volume. Thats not too say volume doesn't count anymore, but I have seen more and more in these past 5 years or more ,,, moves made and stick without as much volume as you would have seen in the past. Why? I have no clue... sometimes I;ll pull and trade and looking during the day and I;ll see volume come in,, and sometimes it comes short. so go figure...

if we look at our proxies, SLV and GLD,, the volume was pretty beefy, tho if you look in the past, we had days with even MORE volume and they didnt stick...

So I mean, I like to see volume back up price,, and today wasnt too shabby on the proxies, I didnt see what the contracts traded where.

I think for now, we can see gold popping back into the range on the upper end as well with silver. The overnight reversal was huge and as I said earlier tonight, I have seen some big moves, over time, come from price action during in the overnight,,, whether it was a trend reversal or momentum reversal, etc.

As always, we need follow through, we need confirmation. So how far gold and silver go from here, how shallow are the pull backs and how much buying gets in here is going to be telling and will tell us IF last night was the big deal.

I still maintain both silver and gold are STILL in major downtrends, guilty until proven innocent and that we will have some wild swings. The only thing DIFFERENT I see this time was the flush to 52 lows on silver as an example, happening overnight, then we come into the regular session and silver is up. Also, take note that gold didnt make fresh yearly lows.. in fact gold is leading silver...

so again, lets see how this week goes, and take it level by level, day by day... I remain skeptical because we have seen these sort of moves before, but this overnight futures move from last night makes me think "hmmm"... but who knows, I could be thrown a head fake.. I can only go based on past experience and then follow what price does in the now. Ill be patiently watching...

This was posted on the 11.2.14 or 2nd Nov 2014.




Silver has just bounced back from mid US$14 to mid US$16