Disclaimer
Investing involves some degree of risk. Investors should inform themselves of the risks involved before engaging in any investment. I accept no responsiblity for your failures as an investor. Disclosure - Long physical Gold, Silver, and mining companies.
SILVER-
Silver is currently putting the final touches on a classic head and shoulder formation. Downside weakness appears between the 11.80 and 12.80 range. If 11.80 holds as the bottom, expect the bull to ride again and retest the 16 dollar or higher range in the next 90 days. Silver is currently trading on the August contract which is notoriously weak and should be viewed as a consolidation and buy point. If 11.80 fails to hold, 10.50 is the next resistance point. I don't anticipate weakness below the 10 dollar level this year. The MACD and RSI are getting ready to flash buy signals and are indicating an oversold and undervalued market.
GOLD -
Gold has three numbers to watch. The first two numbers to watch are 870 and 950 and the last one is 905. If Gold retraces below 905, it has strong support at 870. On the upside 950 is the magic number. After 950, Gold should easily push through 1,000. Remember, Gold is in a long term cyclical bull market and upside potential is unlimited while downside risk is around 750.
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