Goldtent TA Paradise

Silver

1. Nautilus says:

   February 25, 2020 - 12:49 pm at 12:49 pm

   Hi there. I follow cycles, and $gold is in the timing band for an intermediate term high. So I think it is quite possible that the cycle peaked yesterday.

   The underperformance of some of the silver miners I follow, like AXU and AG, reminds me an awful lot of 2010. Basically, if this plays out similar to 2010, I would expect gold to correct for the next 6-8 weeks, and for the silver miners to positively diverge from $gold before $gold finds its low, perhaps some time in late March/early April. Perhaps $hui will test its 200 day EMA as $gold makes its low, just as it did back in 2010. I think AXU and AG won’t dip significantly below their 200 day EMAs, and they are already much closer to that EMA than $hui currently.

   I could be totally wrong about this scenario, but it is something that I have kept in the back of my mind in case we do get a large correction in $gold here. It is not the end of the world, although it may severely frustrate people over the next 6-8 weeks. To the contrary, such a long consolidation around a rising or flat 200 day EMA is bullish given the primary trend.