Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
US Economy Has Been in an Economic Depression Since 2008 - 22nd Oct 21
Extreme Ratios Point to Gold and Silver Price Readjustments - 22nd Oct 21
Bitcoin $100K or Ethereum $10K—which happens first? - 22nd Oct 21
This Isn’t Sci-Fi: How AI Is About To Disrupt This $11 Trillion Industry - 22nd Oct 21
Ravencoin RVN About to EXPLODE to NEW HIGHS! Last Chance to Buy Before it goes to the MOON! - 21st Oct 21
Stock Market Animal Spirits Returning - 21st Oct 21
Inflation Advances, and So Does Gold — Except That It Doesn’t - 21st Oct 21
Why A.I. Is About To Trigger The Next Great Medical Breakthrough - 21st Oct 21
Gold Price Slowly Going Nowhere - 20th Oct 21
Shocking Numbers Show Government Crowding Out Real Economy - 20th Oct 21
Crude Oil Is in the Fast Lane, But Where Is It Going? - 20th Oct 21
3 Tech Stocks That Could Change The World - 20th Oct 21
Best AI Tech Stocks ETF and Investment Trusts - 19th Oct 21
Gold Mining Stocks: Will Investors Dump the Laggards? - 19th Oct 21
The Most Exciting Medical Breakthrough Of The Decade? - 19th Oct 21
Prices Rising as New Dangers Point to Hard Assets - 19th Oct 21
It’s not just Copper; GYX indicated cyclical the whole time - 19th Oct 21
Chinese Tech Stocks CCP Paranoia, VIES - Variable Interest Entities - 19th Oct 21
Inflation Peaked Again, Right? - 19th Oct 21
Gold Stocks Bouncing Hard - 19th Oct 21
Stock Market New Intermediate Bottom Forming? - 19th Oct 21
Beware, Gold Bulls — That’s the Beginning of the End - 18th Oct 21
Gold Price Flag Suggests A Big Rally May Start Soon - 18th Oct 21
Inflation Or Deflation – End Result Is Still Depression - 18th Oct 21
A.I. Breakthrough Could Disrupt the $11 Trillion Medical Sector - 18th Oct 21
US Economy and Stock Market Addicted to Deficit Spending - 17th Oct 21
The Gold Price And Inflation - 17th Oct 21
Went Long the Crude Oil? Beware of the Headwinds Ahead… - 17th Oct 21
Watch These Next-gen Cloud Computing Stocks - 17th Oct 21
Overclockers UK Custom Built PC 1 YEAR Use Review Verdict - Does it Still Work? - 16th Oct 21
Altonville Mine Tours Maze at Alton Towers Scarefest 2021 - 16th Oct 21
How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
The Only way to Crush Inflation (not stocks) - 14th Oct 21
Why "Losses Are the Norm" in the Stock Market - 14th Oct 21
Sub Species Castle Maze at Alton Towers Scarefest 2021 - 14th Oct 21
Which Wallet is Best for Storing NFTs? - 14th Oct 21
Ailing UK Pound Has Global Effects - 14th Oct 21
How to Get 6 Years Life Out of Your Overclocked PC System, Optimum GPU, CPU and MB Performance - 13th Oct 21
The Demand Shock of 2022 - 12th Oct 21
4 Reasons Why NFTs Could Be The Future - 12th Oct 21
Crimex Silver: Murder Most Foul - 12th Oct 21
Bitcoin Rockets In Preparation For Liftoff To $100,000 - 12th Oct 21
INTEL Tech Stock to the MOON! INTC 2000 vs 2021 Market Bubble WARNING - 11th Oct 21
AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
Stock Market Wall of Worry Meets NFPs - 11th Oct 21
Stock Market Intermediate Correction Continues - 11th Oct 21
China / US Stock Markets Divergence - 10th Oct 21
Can US Save Taiwan From China? Taiwan Strait Naval Battle - PLA vs 7th Fleet War Game Simulation - 10th Oct 21
Gold Price Outlook: The Inflation Chasm Between Europe and the US - 10th Oct 21
US Real Estate ETFs React To Rising Housing Market Mortgage Interest Rates - 10th Oct 21
US China War over Taiwan Simulation 2021, Invasion Forecast - Who Will Win? - 9th Oct 21
When Will the Fed Taper? - 9th Oct 21
Dancing with Ghouls and Ghosts at Alton Towers Scarefest 2021 - 9th Oct 21
Stock Market FOMO Going into Crash Season - 8th Oct 21
Scan Computers - Custom Build PC 6 Months Later, Reliability, Issues, Quality of Tech Support Review - 8th Oct 21
Gold and Silver: Your Financial Main Battle Tanks - 8th Oct 21
How to handle the “Twin Crises” Evergrande and Debt Ceiling Threatening Stocks - 8th Oct 21
Why a Peak in US Home Prices May Be Approaching - 8th Oct 21
Alton Towers Scarefest is BACK! Post Pandemic Frights Begin, What it's Like to Enter Scarefest 2021 - 8th Oct 21
AJ Bell vs II Interactive Investor - Which Platform is Best for Buying US FAANG Stocks UK Investing - 7th Oct 21
Gold: Evergrande Investors' Savior - 7th Oct 21
Here's What Really Sets Interest Rates (Not Central Banks) - 7th Oct 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Silver Continues to Outpace Gold

Commodities / Gold and Silver 2011 Apr 17, 2011 - 12:14 PM GMT

By: Merv_Burak


Best Financial Markets Analysis ArticleOnce again silver is out pacing gold in the weekly performance.  Is it too much of a good thing?  Only time will tell.  Lower gold volume versus higher silver volume seems to suggest the betting is really on silver.


The week started on the down side but ended on the up side. The long term indicators remained positive throughout.  Gold remains above its positive sloping moving average line.  The long term momentum indicator remains in its positive zone above its positive sloping trigger line.  The volume indicator continues to move above its positive trigger line but remains below its previous high of late March.  This is the one indicator still holding back.  All in all the long term rating remains BULLISH.


The intermediate term is just as easy as the long term was.  Gold continues above its positive moving average line.  The momentum indicator continues in its positive zone above its positive trigger line.  The volume indicator continues to move higher above its positive trigger line.  The intermediate term rating therefore remains BULLISH.  This is confirmed by the short term moving average line remaining above the intermediate term line.



I guess the global environment is still not all that great as the gold investors and speculators continue to send gold into new high ground.  It will be interesting to note who has the more power behind the move, investors or speculators.  We’ll probably know that on the next serious correction.  A serious correction will end with gold eventually moving into even higher highs if the investors have the upper hand.  If the speculators have the upper hand gold would continue declining into a bear market move.  So, we’ll just have to wait until that time, which is not yet here.

The weekly action was down and up BUT on low relative volume.  Gold action volume has remained below its 15 day average even as the average has been steadily declining.  Over the past 15 days there were only three days where volume exceeded the 15 day average and those were on down price movement days.  This is what professionals mean when they say the price is moving up higher on a wall of worry.  No one seems to be too enthusiastic about the move but on the other hand no one wants to be left behind either.

Gold continues to move above its short term moving average line and the line slope remains in a positive slope.  The momentum indicator remains in its positive zone and is once more above its positive trigger line.  It is just about to enter its overbought zone so do not be surprised if we get some lateral or negative action over the next short period.  The daily volume action has already been mentioned.  The upside enthusiasm seems to be somewhat suspect.  Anyway, all told the short term rating remains BULLISH.  This is confirmed by the very short term moving average line remaining above the short term line.

As for the immediate direction of least resistance, that seems to be to the up side but one should be on guard for some lateral or negative motion.  Gold is once more getting quite far above its short term trend line and one might expect a move back towards the trend.  The Stochastic Oscillator is positive and not yet in an overbought position but that could be just a day or two of more upside action.  I’ll go with the up side for another day or two but the lateral or downside does not look like it’s far away.


Silver continues to out perform gold but with the Friday boost into new highs it looks like the thrust is just about ready to take a breather.  The latest action is butting up against the upper resistance trend line of a three month channel and that means either a lateral move or a reaction back to the lower support.  The intermediate term momentum indicator is entering its overbought zone which further suggests a possible rest or reaction ahead.  However, a decisive break above the resistance line would mean a new more aggressive up trend and much, much higher prices. 

For now everything is positive with the ratings for all three time periods being BULLISH.  


Gold and silver up, stocks down.  It looks like speculators have decided that the stocks have moved too high too fast and have started taking some profits.  Declines were generally in the order of 3% to 4% with the Merv’s Spec-Gold Index taking the biggest hit at 7.0%.  Of course, the speculative silver stocks have been the biggest beneficiaries over the past several weeks so a bigger decline during a bad week was no surprise. 

I have been mentioning the potential negative divergences in the various Gold and Silver Indices.  It looks like the reversals of trend may be coming due although one week does not make a reversal trend.  We need a little more convincing than one week.

Merv’s Precious Metals Indices Table

Well, that’s it for this week.  Comments are always welcome and should be addressed to

By Merv Burak, CMT
Hudson Aero/Systems Inc.
Technical Information Group
for Merv's Precious Metals Central

For DAILY Uranium stock commentary and WEEKLY Uranium market update check out my new Technically Uranium with Merv blog at .

During the day Merv practices his engineering profession as a Consulting Aerospace Engineer. Once the sun goes down and night descends upon the earth Merv dons his other hat as a Chartered Market Technician ( CMT ) and tries to decipher what's going on in the securities markets. As an underground surveyor in the gold mines of Canada 's Northwest Territories in his youth, Merv has a soft spot for the gold industry and has developed several Gold Indices reflecting different aspects of the industry. As a basically lazy individual Merv's driving focus is to KEEP IT SIMPLE .

To find out more about Merv's various Gold Indices and component stocks, please visit . There you will find samples of the Indices and their component stocks plus other publications of interest to gold investors.

Before you invest, Always check your market timing with a Qualified Professional Market Technician

Merv Burak Archive

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in