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

Allspice nice to see you!

Yes, as Cascade said, for silver, one big thing we are looking for is that it eventually breaks its yearly highs, it hasnt yet. It has been constructive thus far and on a shorter time frame, it still sits at 3 month highs.

I tend to ignore just about everything except price action. Nothing else really matters to me and nothing has really worked for me except following price action. Correlations come and go but one thing stays constant- price action.

Why the market prefers gold over any other PM I really dont know. If anything, the rise in gold should lift all boats as they say tho the other three really are lagging gold.

Going forward, gold is where the eyeballs should be.

First on a shorter time frame, we want to see how deep this pull back is going to be. From what I am seeing in the futures market and comments throughout the day, seems we are going to see some sort of counter trend move in the market and that appears to be knocking gold.

This should be expected. Of more importance is how does gold, how do the buyers handle this. Gold has been on a TEAR and whenever you have this sort of buying, you have to expect a pull back. I have seen sometimes things go very mild and shallow and I have seen some pull backs where everyone thinks the entire move was a suckers play. But again, when you get all these gaps, while they can run and go higher, as we saw in gold, it all depends on where that gap started and came in at. Same thing for the miners. This is why where one buys AND how the buy point came in is very important to holding ones wits in these type moves.

Look to see if the LOD from Friday in gold holds. That low is 1196.30. A break of that will get us on a path of lower highs, lower lows which indicates prices are going to go lower (in the context of a shorter time frame). You can refer to our older charts in this thread, in fact the most recent ones where I picked up the updates to see where gold broke out,, that is where this move started at.


I wouldnt be surprised the coming weeks and months it seems like things are OK and fine. Time will tell but the downtrends in world stock indices are going to time to sort out....

Uggggh.....I'm already down $52.50 CAD from my 50 ounce impulse buy last week.....Yup said it right,I thought the train was leaving and I didn't want to miss it.....lol

SO far today and its still early... but gold has not made a lower low over the low of yesterday, on a shorter time frame.

Looking at the miners, specifically the best name out there, GOLD, we see it also is not making a lower low and its roughly less than 2 points away from its 52 high.

Clearly the buyers are stepping in here and buying the dip in GOLD. Pretty obvious the buyers stepped in. Like I said, assets hitting 52 highs just dont hit a yearly high and then roll over, not after all the buying and putting it at yearly highs.

going to be interesting this week....

early still but so far we have gold making a higher high over yesterdays high of day...

GOLD continues to go move higher as well, higher over yesterdays. high of day.

in a shorter time frame, both are moving higher after their pull back this week. constructive price action

If GOLD gets back to 52 highs, it is clear to see, based on price action and remembering that gold hit a yearly high.. that again-

1- yearly highs in terms of price mean an uptrend

2- the pull back was digested and real demand is there, exactly what you want to see after a pull back where an asset drops and buyers step in

3- GOLD is moving higher, when miners and gold move in tandem, that adds more credibility to the move in gold.


so far, the pattern playing out is one where a pull back happens buyers show up and we are back again in time at yearly highs... how an uptrend works.


above all things tho, let it be impressed up ones mind that price action is what is true and only matters, it is the only thing one can certainly trust, it does not lie. It has been this way for decades and decades. It is FACT that assets at yearly highs or hitting yearly highs go up and assets hitting yearly lows or at yearly lows go down.

@cascade

it is super simple. the real battle and trap is wanting to allow emotions to willfully ignore price action which is very easy for humans to do.

however as I was taught, if you cant keep it simple, if you cant explain it in a few sentences, if you cant explain it to a 7 year old, then your trade is all wrong.

simple and less is best and works in trading markets. wanting to know why, having to be right or opinions absolutely mean nothing in trading and markets and you will run out of money fast.

You have to also understand that even with price action, you will be wrong plenty of times and that is where one needs to develop an strategy to manage risk and keep losses tight.

its good to see you can see the simplicity of price action tho. markets do not need to be confusing or complex.

AFter a 30 pt move yesterday in gold, sure does look like its digesting it today with no violent move lower so that looks good if one wants higher prices.

Also, when we look at GOLD, a gold miner, as a proxy, we can see it broke to fresh 52 lows yesterday after a deep pull back and hit another 52 high yesterday with follow through today, exactly what you want to see in a 52 high b/o trade.

some nice shallow dips, sideways action would be great with some time before another attempt higher strengthens these trends.

As a side note, I am going to use the term, The Trifecta. That is the Japanese Yen, The US 20 year bond and gold.

These three are a trend or theme moving higher for the year. All 3 are safe havens, moving together. It is interesting that today, the Yen, the 20 year note/bond and gold are pretty much hanging up there, holding their gains.

Silver's price action is constructive but not as stellar as gold. IT still hasnt hit yearly highs. For now it looks range bound and one could make the case that it is digesting its move as well, as it is higher from where it dipped a few backs and still hits at 3 month highs.

Next point to observe is if silver breaks 16, the upper end of the range.

Overall, things remain constructive. Gold still looks good, mining stocks still look good and the laggards such as silver remain constructive.

I gotta say...


Gold has hit yearly highs and near them. Gold miners moving higher and in tandem. complete confirmation of the price action.

Gold is in an UPTREND. Institutional money is flowing back to gold, it is just starting up now. It is EARLY.

.... and yet, the forum is deadly quiet about these developments. You would think the goldbugs would be jumping for joy. You would think the gold stackers and lovers would be going absolutely CRAZY lol

but its super quiet about this development.

therefore, as a final form of confirmation, the low tone of goldbugs here, the sentiment is so negative that we again, are super early in the uptrend for gold.

Price action should be enough to tell you that gold at being yearly highs is saying this is going higher, this is FACT. it is FACT that assets at yearly highs go higher and assets at yearly lows go lower. SUPER simple stuff but hard for the vast majority to grasp.

In any case, all these things,, just confirm, after the most important measure, which is price action, that gold is going higher.