…for goldbugs like us anyway. Just how high will this leg take us, and when do I need to step aside ?

As you all know, I’ve been predicting that the ‘golden bowl’ or ‘arc’ will take us back towards the old highs. I think it’s safe to say that it’s pretty much done its job now, and we have a date with that $1700-$1800 area. I don’t know about you, but I want to be ready this time. Ready to take profits close to this particular top. I think it’s reasonable to expect a bit of a fight to get past the old highs and up to new all-time highs, with a decent consolidation/pullback likely.

Looking back at how the last great bull run performed can give us many clues. You can see from my chart, that price became extended about 35-40% above the supporting moving average on the monthly chart, during the bigger runs. With that moving average currently sitting at around $1422, the sum is pretty easy and gives us a figure just above $1900 ! On that basis, and considering the current positions of the technical indicators, I now believe my $1700 + target is about as much of a ‘nailed on certainty’ as you can get when predicting the future. I’m edging towards an expectation closer to that $1900 figure. If this turns out to be the case, we can expect that very large move in the mining indices, and silver will certainly move to the $21-$22 region (I wouldn’t rule out a ‘moonshot’ to the next resistance zone of $26-$28.

Exciting times indeed, but sadly it’s the terrible state of the world around us which is driving all of this, lest we forget. Anyway, here are the charts…

 

 

Edit: Silver chart added