Technically the dollar is telegraphing a collapse
The chart looks absolutely terrible for the dollar. The long term up trend has been decisively broken along with a shorter term weak up trend. Failing some major positive event for the dollar it looks like it's got nowhere to go but down, and fast. It's like slipping down a glacier with no outcrops of rock to grab hold of. Trumps comments about a stronger dollar yesterday held little credibility as far as the market is concerned. The dollar has continued it's fall today. But then, how could his comments make a difference when technically the charts are already telling us where it is going. Only major action could slow down the fall, but even then the gods appear to be against the dollar. Anyone who has used chart analysis before will know that there is very little chance of coming back from this.
It looks like the dollar will fall to 11000 by the looks of it and create only the smallest of bounces before falling to around 10400 and then much further.
For precious metals this can only be positive, although it is likely there will be fairly major corrections along the way. The bull market in precious metals is in it's early days and it will continue to get hammered on every spike until the law of diminishing returns takes hold and those who short sell PM's realise that it's a losing game. This might take another 12-18 months, but by then the bull market will likely have moved up a gear and the big institutions will be paying attention. I never thought $10,000 gold was realistic, but having taken a look at the dollar chart and considering the fundamental geopolitical issues in the world I now think $10,000 is possible in the next 5 or 6 years.
Silver has been seriously lagging gold along with the mining companies. There appears to be some reticence that the recent gold rise is a fake out and indeed we could see a correction in the coming days or weeks. However, taking a look at the bigger picture, we could be looking at major gains in silver, gold mining companies, and particularly silver primary miners.
For disclosure, I'm not a professional advisor and this is not investment advice, merely my own observations of the market and indexes, so do your own research.
Are you saying that silver will be going up sooner than gold. In your assessments do you consider silvers industrial uses or do you only focus on the charts technicals. Looks like you do good analysis. Thank you.
Everything considered, but the technicals reflect everything there is to know in the fundamentals. I think gold will actually surge first, and when that happens silver will have a lot of catching up to do. Gold is really struggling with 1360 at the moment, but when it moves decisively over 1360 I would expect a surge to around 1400 or just before, before a significant correction. On the next move up after that gold might break 1400, once that happens silver and the miners will really wake up.
I hold both. But I am holding more silver, so i am more interested on how silver may perform. Also I am wondering do you do analyses on a regular basis? Thank you for you response and may you have more followers.
Yes I do analyse fairly regularly but only for personal interest. Have a look at some of my recent posts, the analysis ones usually have a chart in them so they're easy to find.
...not Asleep, SUPPRESSED! I agree with your TA but it's just TPTB signals that more BS is coming. But maybe this time it will not work, or not be enough? We shall see...
Very astute. You should also look at the dollar Vs JPY, this more or less dictates the carry trade.
Charts / technical analysis is a little 'iffy' (IMO) as they paint the tape. But some numbers can't be painted such as the GSR. This was about 78, so if you consider that historically this ratio has been about 16 and the amount of gold to silver pulled out of the ground is about 10 to 1, it makes sense that the price of silver should move high than gold. Also silver has industrial applications where gold really doesn't.
I believe that the price of the metals have been kept low using 'paper' contracts on the COMEX and I have been waiting for that to explode since 2008 or so. I am now aware of EFP and I think they are using it to lessen the liability on the COMEX.
Over all, I am in agreement with your position, nice post.
I used to be a bit sceptical on chart-ism and technical analysis. Many years ago a my friends father was trying to tell me about it as he was a thought leader at the time and had a number of books published on it. It all sounded a bit like reading tea leaves to me, but if you consider that all of the fundamental information is priced into the charts (including manipulation) you can see patterns are quite predictive. Chart painting does go on, but that could only ever be on a day trading basis, no single institution could ever paint long term charts without them rebounding to where they are supposed to be. It would take trillions to do it effectively.
I most of us invested in PM's who are still here have been waiting many years. I've also been in since 2006 so it's been a long decade of failed expectations.
One thought...maybe it is ....but will others? So maybe it still retains top position eventhought it’s weak? I’m waiting for the cabal precious metal grip
;) [insert tongue in cheek commentary]
... Charts my a$$! Charts are useless w/o the fundamentals...
and you are ignoring the BIGGEST ONE!
Get Ready for another round of manipulation.
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