Loading ...Silver – This Is What I Think
I think it’s highly likely that something is going to ‘snap’ next week. Just clear your mind, step back and consider the following…
1) The gold/silver has made a break above a bearish looking rising wedge. I believe this is a fake move, just like the fake move the US Dollar made outside my ‘domed top’ formation. Why ? Because it’s at multi decade, historic highs already – it’s very, very stretched.
2) The US Dollar is no longer a safe haven as it’s lost it’s advantage over the Euro/Yen etc. The Dollar cycle high is behind us, with the next low due around 2024 (in my view).
3) More rate cuts are inevitable. Very soon.
4) Silver has built a very clear ‘bull flag, formation.
So I’m going to suggest it’s ‘highly likely’ that it happens next week, following a weekend of terrible headlines. Silver takes off, gold makes a run towards $1800 and the GSR breaks down. Of course, I could be wrong, but that’s what the charts are suggesting to me.
Thanks Northstar… I thinks to now understand now your pseudonym.. you really are a “guiding light” help remove noise. Not easily done.
Last time it went from your lips to God’s ears things worked out. I am gonna believe you have a red phone to the Almighty and go with this analysis NS! 🙂
Thanks Aurum. Next week will be another volatile one, I think.
I have a different perspective on this. GSR is in an explosive uptrend… NOT a FBO. This is the metallic credit spread in action. This blowout move is signaling full on credit stress. It could go to unheard of levels. In the past GSR 80 is often the limit, but this is blowing through this.
Thanks for taking the time to respond Plunger. I can see the case for that outcome too, and I’ll come round to that way of thinking if the silver bull flag and multi year arc fail. We’ll know very soon 🙂
I may be helpful for us both to debate/exchange ideas here on this. I am a long term silver bull, but in the short term silver looks very heavy to me as gold definitely outperforms silver, hence the GSR continues to rise. It is sending us a message.. more stress ahead.
The industrial component of silver demand is no doubt taking a hit, but supply may experience issues too. The extent to which silvers role as ‘poor mans gold’ takes hold will play an important role. I feel it may be too early in the cycle for that though, so, I agree silver may fail to break out. For that reason, I will be watching the support on the bear flag and arc VERY carefully.