With silver breaking out decisively to the upside, bears are running for cover.
We had noted in our July 13th News Alert, “We are paying especially close attention to the bull vs. bear tug-of-war in the silver market around $19/oz. If the bulls yank prices decisively above that level on a strong close, short covering by capitulating bears could help drive a powerful breakout rally.”
That’s exactly what happened. The rally really accelerated once the $20/level was taken out last Monday…
The best performing precious metal for the week was silver, up 17.79 percent. Silver had its biggest weekly gain in nearly 40 years and could keep soaring. The metal hit its highest level since 2013. Mike McGlone, commodity strategist at Bloomberg Intelligence says the white metal could eventually climb to $30 an ounce amid a broad-based bull market for precious metals. McGlone predicts the metal will stay between $20 and $25 for an extended period before moving higher. The Global X Silver…
Something BIG happened to silver this week. Due to certain positive indicators, I believe silver is now in a new Bull Market. It has been seven long years since the silver price was $23. And with the current momentum, we may see another leg higher this week.
The gold price traded quietly and unevenly sideways until around noon China Standard Time on their Friday. It was sold down to its low tick of the day by shortly after 1:30 p.m. CST -- and its subsequent rally was capped just minutes after 9 a.m. in London. From that point it was sold lower until around 11:45 a.m. BST. The ensuing rally ran into 'something' at 9:30 a.m. in New York -- and it was sold lower for the next fifteen minutes. It rallied a bit from there -- and then traded mostly…
Both gold and silver surged dramatically higher this past week, propelled by torrents of investment capital deluging in. The resulting major new highs are really exciting, unleashing widespread fear-of-missing-out buying. But the precious metals’ blistering jumps have left them very overbought. They have come so far so fast they are at and above technical extremes that have proven unsustainable. So caution is in order here.
Gold and silver are powering higher on balance in secular bull…
We tend to spend a lot of time looking into the rearview mirror, especially when under duress.
Connected to this is something psychologists call "recency bias." This simply means that what has happened in the near to intermediate past tends to inform and influence us as to how we should behave in the future.
We broke the day down into 4 segments, to show 4 different trends. In trend 1, we see a rising basis while the price is moving sideways and then down. The move down is not small—75 cents. We crossed out the brief spike in basis and drew a blue line to bridge the gap, as we think the spike was spurious (it occurred before the trading day opened in London).
Next in trend 2, there is a big drop in basis, from about 8.5% to well under 5.5%. This occurs with a volatile price, which moved up from…
The purpose of this update is to celebrate and mark silver’s powerful breakout from a giant base pattern that started to form as far back as 2013 – 2014, a breakout which has only happened during the past 2 days, yesterday and today, with today’s advance finally seeing it break clear above the resistance at the upper limits of the base pattern. While this doesn’t mean it can’t drop back again it makes it less likely, and even if it does it is likely to soon turn up again.
The target of the daily and weekly chart patterns is 24+. We have had this loaded in much the same way and for the same technical reasons we’ve had an initial target of 375 loaded on the HUI gold stock index since last year. Much like HUI’s daily/weekly chart patterns now agree with the target of its big picture monthly chart so too do silver’s shorter-term charts agree with its big picture objective.
Gold and silver markets advanced early this week, with silver leading the way. On Thursday, the metals sold off a bit as the U.S. dollar gained.
The major trend for the dollar, however, is down. The Dollar Index has been grinding lower since mid March, when it put in a spike high.
Silver finally broke through $19 level with a strong close above it on Monday. There hasn’t yet been much follow-through. Although silver has continued to close above $19, we’re not seeing a big momentum push…
