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.
Where is Silver headed? To answer that question we must take a look at the chart and see what the charts telling us. Silver went through a classic cup and handle formation straight into a head and shoulder formation. If that's not bullish, I don't know what is......Silver should trend into a roller coaster up trend before revealing the next formation. Minor upside resistance lines reside at the shoulders between 13.80 and 14.20. If this level is cleared, the next resistance resides at 15.50 and 16.00. If Silver tries to test the 15.50 level, the next pattern should reveal itself. I am guessing it will be another head and shoulder formation and perform the usual 3 dollar high to low game. The number 16 is really the only game in town for Silver.
If 16 is broke on the upside, 26 will be fully in play.
Gold remains in an inverted Head and Shoulder formation on the weekly and daily charts which is extremely bullish. Gold is experiencing a brief pull back and any weakness below 930 should be viewed as a buying opportunity. Down side resistance is formed at 918
and then at 901 (38.2 Fib retracement) with further downside at 860 (50% Fib retracement). All those noted downside levels would be great buying opportunities.
Weekly Gold Chart:
The daily chart looks a little more telling with 925 as a key resistance point. If 925 is broken,
look to 900 to offer support.
Daily Gold Chart:
Like I said previously. Anything below 930 should be seen as a buying opportunity. Even if gold falls to 860 or below, you should be loading up and waiting for the next leg up that will push gold between 1200 and 1500.
