Loading ...GSR Backtested
Gold to Silver ratio has backtested. Will it hold? If it does… this is the perfect spot for gold and silver to turn back down. Will it? We’ll see.
Silver has backtested. Second chart below is zoomed. On the second silver chart I added the red line that looks like resistance.
Here is gold. If it’s going to turn down and create a giant bear flag this is as good of a place as any…
Here’s the dollar. Yesterday it broke back below the red line causing gold and silver to soar. Today back above.
I had to exit shorts a couple days ago. Thinking I’m going to be short by the end of the day and give it one last try. (Stubborn beyond belief!) Good luck everyone.
Hi Chuck:
Ok – I thought you had been “cured” of this – there’s always a chart that can make your point of view make sense, but the proof (at least since the May bottom has been in the price action, FWIW.
I do “see” the potential completion, wave-wise of of this impulse move and a corrective sequence could now occur, but after that another and more powerful impulse up. I took off the leverage I entered last Friday in anticipation of this move – was 125% long with leverage now 75% long – could go to 50% depending how next week plays out.
Chuck what have you identified as the likely support…$1404 has been fairly consistent and range MAY be moving up…downside MAY be somewhat limited…JMO
Support is around $1300. This entire 7 year basing formation is contained within one chart pattern – the huge ‘bowl’ basing pattern. It’s had numerous touches on the way down, and now on the way up. It’s the exact same pattern that forms and led us into the last huge PM rally in the early 2000’s. Using history as a guide, this is another, near identical chart pattern. We can fall all the way back to $1300 and it’s still hugely bullish – just look at what’s happening to gold globally. That’s no fluke or coincidence in my view. Your short trade may well work, but if/when we hit the edge of the bowl again, my advice would be to go long.
Chuck is a Contrarian’s Contrarian
🙂