Silver takes off
Is silver about to shine?
Silver on the 1 hour chart
Silver has seen a huge 5% pump in price in the past week. At one point it was up 4% in a single day. This has a lot of silver and gold bugs excited for a breakout, but I'm recommending you hold off from a momentum buy. Here's why:
Gold leads, silver follows:
History shows that silver is always reacting to gold almost as if it is a leveraged derivative of gold. When gold rises silver shoots high, when gold falls silver crashes.
Let's take a look at what's happening with gold on the weekly chart.
Gold is testing resistance that was established back in 2016 at about $1365. Gold just hasn't been able to break through (yet). This line of resistance and golds trend line upward is creating an ascending triangle pattern, which is proven to be bullish.
Silver's success is all dependent on Gold breaking up and out of this ascending triangle pattern and breaking through the $1365 level.
Silver's technical developments:
If you take a look at the chart below, silver is forming a descending wedge pattern. This technical pattern is known to be very bullish and very explosive.
I am expecting gold to continue to struggle with the $1365 levels, and maybe even revert to lower prices. Silver will most likely take a downward bounce from its resistance levels and continue with its struggle.
How do I take action?
You can take action by waiting this out and seeing what gold does at $1365. Does it break through and head higher? Or does it revert to lower prices This will lead silver in either direction. You can watch the price action with tradingview. I use this tool more than anything when trading and investing, and it's completely free.
With the gold-to-silver ratio at 80, I am only buying silver. But I'm not buying at these levels. I will wait until silver hits $16.50 to make another purchase.
If you don't know a good place to buy some coins and bullion, I only use JM Bullion. They offer free shipping for orders over $100, have some of the cheapest prices, and great promotional deals every week. Check them out.
Thanks for reading!
Disclaimer: I am not a financial advisor. The articles that I write are for educational purposes only. Do your own research and hold yourself accountable for the investments that you choose to make.
Check out some of my most recent articles, your support is much appreciated:
Why buying a home is a terrible investment
Bitcoin: Bear Market Woes
Bitcoin on the move
Are we approaching a 1929-like stock market crash?
The Most Effective Way to Invest in the Stock Market
Why Saving Cash Will Make You Poor
Intelligent Investing: Becoming a Shrewd Investor
How Do Gold and Silver Fair During Asset Deflation and Economic Recessions?
Wyckoff Logic: Finding Entry into a Market
Bitcoin: Testing Major Resistance
Yamana Gold (AUY): An Undervalued Stock with a lot of Potential
The Case for Precious Metals and Mining Stocks
Are you a trader? Do you hate paying brokerage fees and commissions? Sign up for Robinhood using my link:
http://share.robinhood.com/micahm18
Robinhood is the first zero fee stock market broker that offers free option trading, crypto trading, and much more.
1 in 150 chance of getting a Facebook, Microsoft, or Apple Stock
1 in 90 chance of getting Ford, snapchat, or AMD stock
100% chance of getting a free stock
Robinhood... Taking from the rich, giving to the poor...
Follow me on social media:
