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

Since our last update, gold and silver remain range bound, just in the usual chop they have been in for some weeks now.

Its interested we saw silver break briefly below this range tuesday and then bounced back into the range.

All the element of time will allow us to break from this range and see whats the next move in store for gold and silver, remain patient.

with the intra-day move today, gold is now squarely in the lower end of the range. Next week could bring clues if the lower end holds,,, which is for now 1141.60

The same can be said for silver as of right now.

I hope to have some charts up, but it looks like we are getting closer and closer to resolution of this choppy trade.

and... prices bounce again, moving higher and putting gold and silver back in their ranges they came out of last week.

This move today should not be a surprise if one has been following this thread, as we had discussed over the weekend, there was an area of temporary support and from there, gold and silver caught a bounce.

Nice move but nothing more can be said, as we have seen before, these type moves happen quite a few times and then fizzle out.

Wow! Silver at $16.70 drops to $15.80 in a couple of hours.

well..

this is how markets are. unpredictable.

Whats interesting with the price action after today is gold and silver are back in a range, trading sideways, at the lower end of the range.

This is a very boring trade here... but it is pretty much like any other financial asset in the market.

I suspect this sort of price action is boring everyone to death, traders included.. heck this price action here BORES me, theres nothing to be had trading wise. Time will tell how this resolves itself.

On a side note, in the commodity complex, it is interesting to note that oil, gasoline are now breaking out and trying to leave their current downtrends and break higher. I also noticed cotton has been putting in work and trying to break higher as well.

Why do I say this? Many times, the commodities, once a few start moving, there are times when in time, they all start moving in the same direction... my mind then turns to gold and silver,,,, IF these I just mentioned continue to grind higher.. could this have an effect on silver and gold since they are all commodities....

Time will tell...

yup your chart for silver must have the top range now somewhat lower than the last chart you posted.

But the bottom range might of gone down just a small amount maybe!

Silver seems to be narrowing down into a smaller range from top to the bottom with price action still going lower.

It seems strange that the top price range seems softer than the bottom price range.

Ok, time to get this updated. First all I apologize for falling off track here in updating. I have been just swamped with work and other investments, so much so I havent even looked at coins in general for weeks and weeks now.

I wanted to write something up real quick last week as silver broke out but I just did not have the time. Again, I apologize for this lapse. Now let us get this updated-

Silver




After weeks and weeks of churning and even watching silver break down and come close to hitting the lower end of the range when we last had our update, it bounced, churned in a range and proceeded to break out on 5/14 out of the range.

So what are we to think of this?

There are a lot of things to consider. First of all, silver and gold are worth of at least a trade with this current price action. There will be traders looking at taking positions and there are traders with shorter time frames that are already in this trade. Now I know you are saying "I dont trade gold and silver, I just want to know what happens next." so let us look together at what can happen from here right now

First of all, please look at the silver chart. Look to the far left, to the green arrow. 17.43 was the upper range on 2/17/15 and that was broken almost 4 months later. We can see the break out by looking at the white arrow on the far right of the chart, on Thursday it broke higher. As it stands right now, its sitting above the break out which is good.

Now this is where it gets interesting. For starters, anyone buying the break out on Thursday will either hold with a percentage stop or bail. While its possible that silver runs higher, I would expect, based on its current pattern to retrace or pull back soon. I say this because it is extended in terms of price as it broke out. Nothing wrong with that, but usually its better that the break out retraces, that is, that it pulls back and then again attempts to push higher.

So this is what I would be looking for-

1- either buying keeps pushing higher without taking a breather

OR

2- we see silver pull back and then attempt to get over 17.58, the high of day from the Friday close.

Usually, when a break out happens, in this case, to the upside, it leads to higher prices and sets a higher range. So the BIG question is now- is THIS the move that finally gets silver out of its downtrend? We have been trading in this range since October of 2014. A longer range, followed by a break of the range in either direction usually indicates a change in trend and price. As we say, "the longer the base (range) the more it moves into space". So this is an important area to watch.

As always we cannot say with all certainty that this sticks. We must be patient and allow things to play out. At best tho, the probabilities increase for higher prices and if we are going to go higher, this break out here must hold.

now lets look at gold






In almost the same fashion, gold has been moving higher, tho its still shy of breaking out completely. Is this a case where gold is following silver? I have no idea but it really does appear gold wants to break out and follow the price action like Silver.

To really get a good break out, it would be good to see gold break out of the range, the price target to break the range would be 1236.71. Take a look at the chart and look far left to where the white arrow is at. That is the area that would be good for gold to break out of.

Again, it may break out here. However, as each day goes by, the more the chances of this move either stalling out or pulling back. To repeat, a pull back and re-test of the break out area would NOT be bad.

Gold and silver are trying to move higher, silver already has broken out. Questions abound tho, does gold follow silver? The big one again is: is this the big move that gets silver and gold out of this downtrend?

No one can say with full certainty. From my perch, I see a trade developing to be a buyer. How far they get I have no clue. I generally do not put any price targets on how far or low an asset goes, rather I would with ranges and break outs and let the market decide where and how far it goes. Putting price targets never works and is almost always wrong.

Ill do my best to update this thread everyday here and watch closely the price action so I can help provide a narrative to what is going on.

I can not understand why every time silver moves up this thread dies (13 posts in the last 30 days). If the price was falling there would be 4x more posts. Does everyone that watches this thread want silver/gold to go up or down? not sure........................