Best of the Week
Most Popular
1. Next Financial Crisis Is Already Here! John Lewis 99% Profits CRASH - Retail Sector Collapse - Nadeem_Walayat
2.Why Is Apple Giving This Tiny Stock A $900 Million Opportunity? - James Burgess
3.Gold Price Trend Analysis - - Nadeem_Walayatt
4.The Beginning of the End of the Dollar - Richard_Mills
5.Stock Market Trend Forecast Update - - Nadeem_Walayat
6.Hindenburg Omen & Consumer Confidence: More Signs of Stock Market Trouble in 2019 - Troy_Bombardia
7.Precious Metals Sector: It’s 2013 All Over Again - P_Radomski_CFA
8.Central Banks Have Gone Rogue, Putting Us All at Risk - Ellen_Brown
9.Gold Stocks Forced Capitulation - Zeal_LLC
10.The Post Bubble Market Contraction Thesis Receives Validation - Plunger
Last 7 days
The Fed's Misleading Money Supply Measures - 17th Nov 18 -
Stock Market Outlook: Why the Economy is Bullish for Stocks Going into 2019 - 17th Nov 18
NO DEAL HARD BrExit Tory Chaos, Theresa May Leadership Challenge - 17th Nov 18
Gold vs Several Key Investments - 17th Nov 18
GDX Gold Mining Stocks Q3 18 Fundamentals - 17th Nov 18
Is Gold Under or Overpriced? - 17th Nov 18
Active Managers are Bearish on Stocks. A Bullish Contrarian Sign - 16th Nov 18
Will The Fed Sacrifice Retirement Portfolio Values For The "Common Good"? - 16th Nov 18
BrExit War - Tory Party About to Replace Theresa May for NO DEAL BrExit - 16th Nov 18
Aspire Global Makes Significant Financial Strides - 16th Nov 18
Gold Oil and Commodities …Back to the Future ? - 16th Nov 18
Will Oil Price Crash Lead to “Contagion” for the U.S. Stock Market? - 15th Nov 18
How NOT to Be Among the MANY Stock Investors Fooled by This Market Myth - 15th Nov 18
Tory BrExit Chaos Cripples UK Economy, Wrecks Housing Market Confidence - 15th Nov 18
Stocks Could End 2018 With A Dramatic Rally - 15th Nov 18
What Could Be the Last Nail in This Stock Bull Markets Coffin - 15th Nov 18
Defensive Stock Sectors Outperforming, Just Like During the Dot-com Bubble - 15th Nov 18
Buying Your First Home? Here’s How to Save Money - 15th Nov 18
US Economy Ten Points or Ten Miles to ‘Bridge Out’? - 14th Nov 18
US Stocks: Whither from Here? - 14th Nov 18
Know exactly when to Enter&Exit trades using this... - 14th Nov 18
Understanding the Benefits of Keeping a Trading Journal - 14th Nov 18
S&P 500 Below 2,800 Again, New Downtrend or Just Correction? - 13th Nov 18
Warning: Precious Metals’ Gold and Silver Prices are about to Collapse! - 13th Nov 18
Why the End of the Longest Crude Oil Bull Market Since 2008? - 13th Nov 18
Stock Market Counter-trend Rally Reaches .618 Retracement - 13th Nov 18
How to Create the Best Website Content and Generate Organic Traffic - 13th Nov 18
Why the Stock Market Will Pullback, Rally, and Roll Into a Bear Market - 13th Nov 18
Stock Markets Around the World are Crashing. What Not to Worry About? - 12th Nov 18
Cyclical Commodities Continue to Weaken, Gold Moves in Relation - 12th Nov 18
Olympus Tough TG-5 Camera Stuck or Dead Pixels, Rubbish Video Auto Focus - 12th Nov 18
5 Things That Precede Gold Price Major Bottoms - 12th Nov 18
Big US Stocks Q3 Fundamentals - 12th Nov 18
How "Free Money" Helped Create Sizzling Housing Market & REIT Gains - 12th Nov 18
One Direction More Likely for Bitcoin Price - 12th Nov 18
The Place of HSE Software in Today's Business - 12th Nov 18
Gold Asks: Are US Bonds Overvalued? - 11th Nov 18
Why the Stock Market Will Pullback Before Heading Higher - 11th Nov 18
GDX - Will you Buy This Hated Stock with Me? - 11th Nov 18
Christmas and Halloween LED Dynamic Projector Light Review - 11th Nov 18
Wall Street Veteran: Why I Don’t Lend to Family and Friends - 10th Nov 18
Stocks Breaking Higher, but Resistance Ahead - 10th Nov 18
Stock Market Was Supposed to “Crash Like 1987” - 10th Nov 18
SPX : The Incredibull Stock Market Plays On - 9th Nov 18
USD/CAD – The Moment of Truth Is Coming - 9th Nov 18
Is the Stock Market’s Rally “All Good To Go”? - 8th Nov 18
End in Sight for 'Unloved' Silver - 8th Nov 18
Outlook for Gold & Silver Precious Metals Sector is 'Positive' - 8th Nov 18
A Great Day for Metals as Platinum Price Breaks Out - 8th Nov 18
Future US Interest Rates, Financial Markets, and the FED - 8th Nov 18
Buying an Approved Used Land Rover From a Dealer - What You Need to Know! - 8th Nov 18

Market Oracle FREE Newsletter

Free Online Trading Session

Is Silver Really a Weak Link

Commodities / Gold and Silver 2016 Feb 03, 2016 - 05:13 PM GMT

By: Submissions

Commodities

Robert Alexander writes: I am not what many consider to be a Perma Gold Bull, but I do expect a 3rd phase of the 2000 Gold run to take place and end in a spectacular blow off top phase. That being the case, I also watch intently when we get these bear market lows for signs of a bigger picture change. Lately I am hearing that “Silver is weak”.  “Silver cant get out of its own way. It is setting up to plunge now.”  I’ve been discussing these lows and successfully trading them for weeks now. Is that the way I see current conditions? Is Silver really the weak link?  Not the way I look at things.  To the charts…


Looking at GOLD first may  help us with Silver

GOLD – 2 charts  –  Chart 1 – Lets take a look at Gold when it bottomed back on December  4th. I identified the lows with a weekly Bullish shake out  ( And a few other daily charts showed further confirmation of lows).

Chart 2 –   As Gold meandered at lows, I constantly heard “Gold is weak . It cant even rally.  We are going to plunge to $1000. I am going short.”   I pointed out that a Triangle was forming at the lows and mentioned how these often deceive people as a weak. They then break out higher  (See the left side of the chart).

GOLD-  It  wasnt ‘weak’, it broke out but Miners broke down. Many said that is very bearish, so…

To add confidence to our recent lows, I pointed out a triangle that I remember trading in 2012. It was VERY TRICKY.  Gold broke out and Silver & Miners broke down, just like in January.  Soon Both ran quickly higher leaving many behind ( Afraid of the weak Gold, Silver,  & Miners).

PLEASE NOTICE THAT GOLD WAS CLIMBING from MAY – AUG.   WHAT WAS SILVER DOING?

SILVER fooled people into thinking that it was “Weak?” Gold was rising in May , June, July, Aug with higher lows , but Silver was not. Notice the triangle though.

SILVER – This is how I was viewing Silver  recently,  while GOLD took off and silver “looked weak” to many.  Did you read that too? In my premium reports, I was saying to expect Silver to POP higher soon.

This is my SILVER chart in my premium report this morning.  Set up to break down?  Weak?

My  Jan 15 chart –  This is why I tell my readers that I think Silver will continue higher.  I use a special indicator that is lining up as expected.  The pattern of Basing & then the  surge happens , even in bear market rallies.  We’re basing,  how about the pop? 

 

GDX Tuesday  –  On day 10 and at resistance,  it is strong but stalled for a moment.  Can it break out?

The possibility of a  bullish GDX break out is helped when we look at other miners.   ABX didn’t hold back at resistance of the 200sma.  

DRD –  See HMY, SBGL also.   Many Miners are moving higher.  Can you imagine this happening in GDX / GDXJ?  It is possible in my humble opinion, when the tide finally turns in phase 3 of the Gold Bull.  Huge % gains will be made by those that know what to look for.

Yesterday I posted the bullish set up in PLM,  after someone asked me to keep an eye on it last fall.

It broke out .  I think it could have a lot more upside, with a possible target  being the former high volume highs getting  tested.

Yesterday when many Miners were selling off a little, we saw another small Junior breaking out over the 200sma.   This is encouraging to the overall big picture. I am starting to wonder how quarterly earnings will be for many miners with OIL & NATGAS  holding at lows for so long now.  Much of the cost of Mining is due to energy –  so low costs can add to their profitability .

MUX – Have you seen this one lately?   It was a BUY at $1.00.  Its at $1.37 today. 

So is SILVER still looking weak and ready to break down to you?   Sure, in these markets anything can happen, so we use stops, but I hope I was able to give you another way of looking at it.  By researching similar chart patterns in the past, we see BULLISH probabilities in Silver .

And what about  that BIG PICTURE?  Is it  shaping up at all or still just looking ugly like an ugly  bear market.

HUI is on support and has been consolidating there for 6  MONTHS.   A break out higher will eventually bring us the best trading that we’ve seen in years.  I have been there in 2000-2008 and 2009 to 2012. Look at  2008 – 2012 on the chart below.    $150 to $630+.   

I believe we are close to some very profitable trading for years to come.   Thanks for being here!

If you think that getting a second set of eyes on the markets would help you with your trading, why not sign up and try it for a month at $37.95?   You get access to all of my past reports and future reports for the month.   I think the 2 weekend reports that I posted this past weekend alone may  have been worth that.  It added confidence in the Silver set up. 

To sign up, click here and scroll down

If you do sign up, I recommend reading the last weekend reports as well as yesterday and today .Thanks for being here!

~ALEX

Source: http://www.chartfreak.com/2016/02/public-report-silver-really-weak-link/

By Robert Alexander

http://www.chartfreak.com

© 2016 Robert Alexander - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2018 http://www.MarketOracle.co.uk - 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

6 Critical Money Making Rules