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

absolutely no one can call an exact bottom or top... fools game...

I for one dont partake in the bottom or top calling game. All I watch is price action and use its clues.

Is anyone following what has been happening with the Swiss bank and them abandoning its exchange rate control?
If I am reading things correctly the price on precious metals is about to go vertically upwards right?
I am only a 'scrap merchant' so it's only my opinion, but I am sinking all my spare cash into silver and gold - not the markets but holding the actual metals, thoughts?

Mixed feelings about the current pricing and hope the price head down again for those that enjoy collecting when silver is under $18 spot. I won't buy over $18 unless it's something a bit unique like an old poured bar.

My interest in this thread is related to 1. are silver prices near a bottom, and 2. what is the pricing outlook going to be in 20 years.

Just a few things here-

from a traders perspective, what a beauty of a set up. I trade this sort of set up hundreds of times a year. If you were trading GLD alone, you are sitting on some very nice profits. This is a text book set up you will see if you were buying break outs. Why? Well, looking at GLD we see-

1- solid break out, moving beyond it on day 1 of the break out

2- follow through and continuation.

At this stage, perhaps we see a touch of 1300. Interesting to see gold up 7 days up in a row. Not bad, not a bad thing tho rest would be nice but lets see how far it wants to push. The interesting thing will be seeing how gold reacts to a pull back.

I meant to follow up and do a chart on silver but been behind here but I Will try and fit something in. I will say this tho, silver started its break out last week and from a technical and price view point, from trading these, silver also looks good.

Silver had a nice break out on Friday, followed today by follow through or continuation as we call it. Also a nice set up. This was a key move as silver is now following gold in breaking out.

At this stage, there is a lot of free air above that could allow silver to move up again in this coming week. I'd say silver could easily see a move into 18.60ish this week since the move started on Friday (the break out). Again, so far so good on silver breaking out and having follow through. Those two things are very constructive and key to working first out of this downtrend.

Its possible that we see continued buying for a while. I have seen it before in trading many assets over the years. Markets do the unexpected so do not be surprised.

IF we get a scenario where we see more continued buying, then what becomes important is when the buying finishes, how does that asset deal with a pull back?

The ideal situation one wants to see is for gold and silver to digest those gains through time RATHER than price. How does that happen? When this buying slows down, one wants to see both gold and silver just trade sideways for a while, the longer the better... as the saying goes, "the longer they base, the more they blast off into space".

Remember when we would see gold and silver have hard drops at yearly lows followed by some chop and bouncing that would gone on for several weeks or more? Then, they would break this range, to the downside and when they broke, the move lower was harder and swift.

Well, the exact opposite can now happen, this time with gold and silver moving higher.

So at this stage, this week, look for-

1- how much more continued buying

2- when the buying slows down, how deep will the pull back be?

3- Keep in mind that silver and gold will at some point run into resistance. This is not bad, its normal and part of how markets work things out.

4- Remember, gold and silver, can preserve their gains from this move by time rather than price.

FINALLY- do not worry if you feel you missed the train. There is absolutely no RUSH nor hurry or anything that should make you feel you missed ANYTHING.

What is important is to allow price to led and remember that IF this continues and silver and gold move away and keep breaking the downtrend, there will be many places to properly enter. More importantly tho, one does not have the constant worry if the price will drop after making a purchase.

Leo-

gold and silver remain in downtrends in a larger context or time frame. However, there have been recent developments that are increasing the probabilities of this downtrend trying to reverse, some things that perhaps gold and silver want to stop dropping.

Ultimately the market will decide whats going on and what will happen next with gold and silver. I think tho, based on price action, that both silver and gold are trying to work out of this downtrend. I could be wrong and again, in the end, the market will either confirm whether they are done with the downtrend and the worst is over or prices are just setting up a big head fake to roll over again.

What makes me think prices are trying to work out of the downtrend?

First, as I have highlighted many times over, the overnight futures market action of December 1st 2014. Without going into great detail, lets just say I have seen this sort of event and price action happen, where you see heavy selling in the overnight market and then the next day a complete reversal happens with continued buying and what happens is that the worst is over.

Secondly, the fact that on a shorter time frame, gold and silver are breaking out. they are making some key moves where they need to, with follow through.

Those two events, based on price, have me thinking the worst is over. What now remains to be seen is- how does gold and silver deal with the overhead supply, in other words, how will gold and silver deal with pull backs.

Will they give up their progress in gains? If so, in what manner? Will it be by time or price? Many times before we have had counter trend moves but all of them failed.

At this stage what am now watching is how does gold and silver handle the selling. Finding out what happens here will add to the clues we already have.

I guess the idea of a bottom or top are elusive. If I were a trader, i'd be kicking myself for not buying @15 and selling @18 (20% gain in a short time). The problem with waiting is that trends may reverse many times. I don't see a long settling (high or low), as I believe volatility is here to stay in all markets. 20 years ago, it was much tougher to move money around. Now, it's a click away.

Are we talking paper now or physical? Hard to keep track lately.