Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | UraniumSeek.com 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

Gold Seeker Closing Report: Gold and Silver Gain About 1%
By: Chris Mullen, Gold Seeker Report

Northern Vertex Files Preliminary Economic Assessment Report for the Moss Gold Mine in NW Arizona
By: Northern Vertex Mining Corp.

Does The CoT Structure Prohibit A Rally?
By: Craig Hemke

Harry Dent’s Gold Prediction Invalidated
By: Przemyslaw Radomski, CFA

SELLING OUT OF PRECIOUS METALS AND BUYING BITCOIN…. Very Bad Idea
By: Steve St. Angelo

The Bitcoin Bubble Explained in 4 Charts
By: Jake Weber

VXX Sends an Awesome Message from Another Galaxy
By: Rick Ackerman

Geopolitical Risk Highest “In Four Decades” – Gold Demand in Germany and Globally to Remain Robust
By: GoldCore

Asian Metals Market Update: November-22-2017
By: Chintan Karnani, Insignia Consultants

Gold Seeker Closing Report: Gold and Silver Gain With Stocks
By: Chris Mullen, Gold Seeker Report

 
Search

GoldSeek Web

 
Silver’s… Comeback and Other Important Signals


 -- Published: Monday, 24 April 2017 | Print  | Disqus 

The most prominent action in the precious metals market that we saw last week, took place in silver – the white metal closed the week below the important long-term support/resistance line, thus invalidating the previous breakout. However, there’s more to the precious metals market than just the action in silver. In today’s free gold analysis, we discuss both the developments in silver and other factors.

 

Let’s start with silver itself (chart courtesy of http://stockcharts.com).

 

http://goldseek.com/news/2017/4-24pr/image002.jpg

 

In Friday’s alert, we wrote the following:

 

(…) Still, if gold was to move higher (to $1,310 or so), then the above chart provides us with an analogous upside target – the upper, long-term green line (based on the same major tops as the lower line, but drawn through intra-day tops). It’s currently at about $18.70 – just 10 cents above this week’s high. So, the upside is quite limited.

 

Silver has indeed moved lower after it reached the upper of the declining, long-term, green resistance lines. The lower one (based on weekly closes) is currently at about $18, so if silver manages to close the week below it (which seems likely), the previous breakout will be invalidated and it would likely trigger another powerful decline. For now, the fact that the upper resistance line held, continues to have bearish implications – the upside is very limited and the downside is huge.

 

It didn’t take long for silver to slide below $18 – it did so a few hours after we posted the above and it’s been trading below it since that time. At the moment of writing these words, silver is at $17.92, so the odds are that it will indeed close the week below $18.

 

The volume on which silver declined was significant as well, so the implications are definitely bearish.

 

Naturally, if silver’s signals are not confirmed by other markets, one shouldn’t rely on them, but this time they are. In addition to multiple factors that we discussed in the previous alerts, we would like to emphasize that the breakdown in mining stocks was not invalidated yesterday.

 

The invalidation of the breakdown is now a clear fact. It’s no longer bearish, somewhat bearish, or a bit bearish – it’s very bearish. It’s been confirmed by the weekly closing price, and since the support/resistance line is based on the same kind of prices, the invalidation of the breakout is meaningful and clearly bearish.

 

 http://goldseek.com/news/2017/4-24pr/image004.jpg

 

The long-term gold chart confirms the above bearish comments. The yellow metal moved to the declining long-term resistance line and then declined once again. There was no breakout, so the trend remains down.

 

 http://goldseek.com/news/2017/4-24pr/image006.jpg

 

The Japanese yen which is closely linked to the price of gold, also moved to its critical resistance level (further supported by the zigzag corrective pattern) and thus it’s likely to have reversed its recent direction and decline in the coming days – and so is gold.

 

 http://goldseek.com/news/2017/4-24pr/image007.gif

The financials were more clear as far as their signals are concerned. They too moved to an important level, but their bounce after reaching it was very visible. That’s a major medium-term development. This description is particularly important as the precious metals sector tends to react to major (!) moves in financial stocks (moving in the opposite way). Since the major move up is now (given the confirmation of the breakout above the 2015 high) likely for the financial stocks, a major move lower is likely for the precious metals sector.

 

Let’s take a look at the short-term mining stock chart that appears to be leading gold once again (miners moved ahead of gold in the past months).

 

 http://goldseek.com/news/2017/4-24pr/image008.gif

 

Gold and silver stocks confirmed the breakdown below the rising short-term support line by closing below it for 3 consecutive trading days, moving back to it without invaliding it and by closing the week below it. The volume on which Thursday’s and Friday’s upswing materialized was low, which also confirms that the move lower is the current true direction and the upswings should be treated as corrections.

 

Summing up, the precious metals market appears to be starting to decline even despite the lack of direct reasons to do so and that’s a particularly bearish situation. Precious metals had all the reasons to rally – tensions regarding North Korea, the unresolved situation regarding the U.S. airstrike in Syria and tensions before the elections in France… And it didn’t do anything substantial. Silver declined and miners have not only broken below the rising support line, but they also confirmed the aforementioned breakdown. This, plus other factors discussed previously support the expectation of lower precious metals prices in the coming weeks. Naturally, the above could change in the coming days and we’ll keep our subscribers informed, but that’s what appears likely based on the data that we have right now.

 

Thank you.

 

Przemyslaw Radomski, CFA

Founder, Editor-in-chief, Gold & Silver Fund Manager

Sunshine Profits - Tools for Effective Gold & Silver Investments

 

 

 

* * * * *

 

All essays, research and information found above represent analyses and opinions of Przemyslaw Radomski, CFA and Sunshine Profits' associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Przemyslaw Radomski, CFA and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. Radomski is not a Registered Securities Advisor. By reading Przemyslaw Radomski's, CFA reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Przemyslaw Radomski, CFA, Sunshine Profits' employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.


| Digg This Article
 -- Published: Monday, 24 April 2017 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2017



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer

The views contained here may not represent the views of GoldSeek.com, its affiliates or advertisers. GoldSeek.com makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, is strictly prohibited. In no event shall GoldSeek.com or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.