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

Ok, I'll leave it that way, I'll throw a few charts here and there to hopefully illustrate better whats going on in price.

REMEMBER- charts only tell us the past. For me, I use charts for reference in terms of price, its easier to spot pivots, break outs, break downs and more.

Therefore it is important to not view charts as the tell all and that they have the answer. Charts are nothing more than price and the pattern it has formed. From these formations we get support/resistance in all assets such as bonds, currencies, stocks, commodities, etc.

Eventually, these patterns break up or down or simply chop around in between until they are ready to break in one direction.

The point I want to illustrate at this moment tho, is the ranges we have experienced in gold and the various ranges. Key among them are the gap downs that gold has shown.

Again I repeat myself- dont put all your money on a chart. I repeat again.... and again, they only tell us the past and work as good reference points, price does repeat itself. But as the market looks into the future and we dont know it, we keep an open mind. These reference points in price tho, give us a major clues that as price comes into an area of support or resistance, whether it will break out or break below.

Once you can put yourself into this mind set, you will be able to decipher whats the higher probability. A big part of this is confirmation. Confirmation of a trend, as in the case of gold and silver, again is given by price, such as fresh yearly highs or lows or a range being broken with authority exhibited again,,, by you guessed it, price.

so anyways over the weekend I'll run some very simple clean charts so you can see what I am seeing and planning for the coming weeks.

I hope you enjoy.

ok got a some charts to start the week off. I'll be sticking to GLD and SLV as our proxies as I think this is the simplest form to reach the masses as not everyone (few) are going to even touch futures. Nevertheless, GLD and SLV are the de facto proxies we use and their volume action speaks as to how much they are used. So, that said, charts will refer to GLD and SLV.

GLD- gold has been range bound, its had several ranges. Once again it has failed at the upper end of the range and tumbling lower. Big question is: if/when it breaks out of this range. Expect some chop and bounce going forward from here.






If it breaks that lower end of the price where that green arrow is, probabilities are high we go even lower before gold finds support. Should we get there, then we can start to look at a re-try of the yearly lows which would open the gates to much more selling and strengthen the downtrend. Remember, downtrends are very powerful and can go much farther than anyone thinks or even know. Thats the beauty of trends tho, you can make a ton of money on either side of the trade in a trend. BTW, if we were looking at strong uptrend, you would be seeing this, in fact you did see it over many years in gold and silver.






SLV- silver, boy, just a mess. a lot of chop, up, down, down up, messy, broken asset to me. The biggest range I have highlighted with the blue lines. Getting out of that range is key and matters the most because thats what will let us know in which direction this wants to break.

Again, what we should be looking for is does silver snap that blue line. That would again, increase the probabilities for much lower prices.

In anycase, keep an open mind to what happens. Expect some chop and bouncing as it drops lower. There is also the possibility that perhaps they don't come exactly to the lower range and then bounce... once again putting us firmly in this up/down range.

Eventually, this range will be broken either way, it just is going to take time. So thats what we should be looking for this week. I'll continue to update day by day as well.

Interesting to note the reversal in gold thus far today. Silver also not looking hot as it dribbles lower.

I would think both these come into some sort of support and should catch a bounce of some sort.

more later

Ok lets bring this to speed-

So last post I mentioned how gold and silver could be headed to a point where they would possiblely pop up and/or chop around.

We did get a bit of a pop on 5th and 6th of this week from both gold and silver. We continue in this no mans land, just chopping around, doing nothing.

Silver for its part just keep going down the middle here, not enough in either direction.. yet.

Gold, well the most interesting thing was the reaction to the ECB making a cut. Did gold go higher? Nope, it sank even more today. The reaction further supports the case that low interest rates and money printing cannot be counted on to support gold going forward.

Lets look at what happened today by turning to our proxies, SLV and GLD.

SLV- lower high, lower low

GLD- gap down, lower high and lower low.

Again, what we want to first keep our eyes on at this point is the blue lines on the charts from earlier this week. Are those areas going to get re-tested? If so, what happens when we reach those price areas? Do we either chop around or slice right through them? If we dont bounce from there, much lower prices for gold and silver are a high probability.

So again, as this week winds down, remain patient. Wait and watch to see what happens. If you are looking to buy silver and gold, I would suggest to be patient, see if those lows get tested on the blue lines and then if it rips lower. If it does rip lower and we hit freshly yearly lows I would say step aside and let it run lower.

Again, I dont think, based on price action, for you guys nibbling, if you are looking to stack gold or silver, just wait and let it run lower, just dont rush in at the first move down past there.

Buyers of numismatic coins might want to also wait as well. Tho even at these prices there are good pieces to be had.

In any case, be careful, be patient and dont shoot your whole wad of cash at once. Your patience will be rewarded.

BTW, thanks for the update, Yup! Waiting patiently for better prices to pick up some nice pieces, although the new elephants are very tempting, even now!

Thanks yup for the update. I always check back this part of the forum for your bits of analysis.

Talking about Somalia Elephants..... any of you have $1100+ around to buy a whole set of 11 Silver Elephants. It's very tempting but at around $100+/coin, it's quite hard to swallow.

Even though percentages seem higher the spot is less so not a big deal in reality