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
WARNING - AI STOCK MARKET CRASH / BEAR SWITCH TRIGGERED! - 19th Jan 22
Fake It Till You Make It: Will Silver’s Motto Work on Gold? - 19th Jan 22
Crude Oil Smashing Stocks - 19th Jan 22
US Stagflation: The Global Risk of 2022 - 19th Jan 22
Stock Market Trend Forecast Early 2022 - Tech Growth Value Stocks Rotation - 18th Jan 22
Stock Market Sentiment Speaks: Are We Setting Up For A 'Mini-Crash'? - 18th Jan 22
Mobile Sports Betting is on a rise: Here’s why - 18th Jan 22
Exponential AI Stocks Mega-trend - 17th Jan 22
THE NEXT BITCOIN - 17th Jan 22
Gold Price Predictions for 2022 - 17th Jan 22
How Do Debt Relief Services Work To Reduce The Amount You Owe? - 17th Jan 22
RIVIAN IPO Illustrates We are in the Mother of all Stock Market Bubbles - 16th Jan 22
All Market Eyes on Copper - 16th Jan 22
The US Dollar Had a Slip-Up, but Gold Turned a Blind Eye to It - 16th Jan 22
A Stock Market Top for the Ages - 16th Jan 22
FREETRADE - Stock Investing Platform, the Good, Bad and Ugly Review, Free Shares, Cancelled Orders - 15th Jan 22
WD 14tb My Book External Drive Unboxing, Testing and Benchmark Performance Amazon Buy Review - 15th Jan 22
Toyland Ferris Wheel Birthday Fun at Gulliver's Rother Valley UK Theme Park 2022 - 15th Jan 22
What You Should Know About a TailoredPay High Risk Merchant Account - 15th Jan 22
Best Metaverse Tech Stocks Investing for 2022 and Beyond - 14th Jan 22
Gold Price Lagging Inflation - 14th Jan 22
Get Your Startup Idea Up And Running With These 7 Tips - 14th Jan 22
What Happens When Your Flight Gets Cancelled in the UK? - 14th Jan 22
How to Profit from 2022’s Biggest Trend Reversal - 11th Jan 22
Stock Market Sentiment Speaks: Are We Ready To Drop To 4400SPX? - 11th Jan 22
What's the Role of an Affiliate Marketer? - 11th Jan 22
Essential Things To Know Before You Set Up A Limited Liability Company - 11th Jan 22
NVIDIA THE KING OF THE METAVERSE! - 10th Jan 22
Fiscal and Monetary Cliffs Have Arrived - 10th Jan 22
The Meteoric Rise of Investing in Trading Cards - 10th Jan 22
IBM The REAL Quantum Metaverse STOCK! - 9th Jan 22
WARNING Failing NVME2 M2 SSD Drives Can Prevent Systems From Booting - Corsair MP600 - 9th Jan 22
The Fed’s inflated cake and a ‘quant’ of history - 9th Jan 22
NVME M2 SSD FAILURE WARNING Signs - Corsair MP600 1tb Drive - 9th Jan 22
Meadowhall Sheffield Christmas Lights 2021 Shopping - Before the Switch on - 9th Jan 22
How Does Insurance Work In Europe? Find Out Here - 9th Jan 22
MATTERPORT (MTTR) - DIGITIZING THE REAL WORLD - METAVERSE INVESTING 2022 - 7th Jan 22
Effect of Deflation On The Gold Price - 7th Jan 22
Stock Market 2022 Requires Different Strategies For Traders/Investors - 7th Jan 22
Old Man Winter Will Stimulate Natural Gas and Heating Oil Demand - 7th Jan 22
Is The Lazy Stock Market Bull Strategy Worth Considering? - 7th Jan 22
METAVERSE - NEW LIFE FOR SONY AGEING GAMING GIANT? - 6th Jan 2022
What Elliott Waves Show for Asia Pacific Stock and Financial Markets 2022 - 6th Jan 2022
Why You Should Register Your Company - 6th Jan 2022
4 Ways to Invest in Silver for 2022 - 6th Jan 2022
UNITY (U) - Metaverse Stock Analysis Investing for 2022 and Beyond - 5th Jan 2022
Stock Market Staving Off Risk-Off - 5th Jan 2022
Gold and Silver Still Hungover After New Year’s Eve - 5th Jan 2022
S&P 500 In an Uncharted Territory, But Is Sky the Limit? - 5th Jan 2022

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Gold And Silver Charts

Commodities / Gold and Silver 2016 Aug 06, 2016 - 05:45 PM GMT

By: Michael_Noonan

Commodities

Our pace for posting commentaries will slow down for August by design over the next few weeks, and for the last week of August, there will be no posting due to vacation time. This week, focus will be solely on the charts. There is so much going on in the world and with the Bread and Circuses election in the United States, the sum of which is enough to send the price of precious metals considerably higher, but the reality is price is still under the control of Chinese buying at bargain prices while the West’s central bankers try to keep alive the Ponzi scheme facade regarding gold and silver.

The globalists behind the fiat curtain have been exposed for their financial and political chicanery to keep the vastly underwater banking system “alive and well,” yet the public has no unified voice to be so shocked by the extreme theft by the bankers and their political hacks, so the game plays on.


Gold and silver reflect the only reality that exists in this sea of deceit, the U S strong-arming the vassal political union called the EU with no backbone or popular support, the ongoing disruption and war in the Middle East, the US using NATO to saber-rattle against Russia, forever provoking Putin and casting blame on Russia for much of the ills that go on
around the world when only US fingerprints are to be found everywhere.

There are many articles that discuss the almost inevitability of WWIII with the US not only provoking Russia but China, as well. When the financial house of cards can no longer be held, the go-to alternative has always been war to get the public minds off the source of all woes, the elite’s moneychangers and their ongoing theft from the people.

More thought needs to be given to what practical role gold and silver would play once the fiat Federal Reserve “dollar” loses its status as a reserve currency and receives the recognition it deserves, a third-world nation with a worthless paper fiat currency. How will precious metals holders benefit, and to what use will their holdings be placed?

How may PMs holders are there in Venezuela, and how are they faring? We will look for some answers in future articles. In the meantime, despite the ongoing calls for gold and silver to take off, imminently, the charts do not support a runaway market to the upside.

Straight lines are frequently drawn to represent support or resistance when, in fact, both are the function of an area as opposed to a fixed price point. The two horizontal lines on the weekly gold chart originated from prior failed swing highs. Price broke above the lower one but fell just short of the upper resistance line. Yet, price was contained within that area.

The purpose is to take note of where price has failed previously, and then watch the development of how price reacts on a subsequent retest. It is the basis for simply being prepared to respond at support/resistance areas. For example, one can make a huge mistake buying new positions at an area of resistance because a reaction is more probable than upside continuation.

The wide range, poor close bar of 4 weeks ago was a red flag event. It was a message from the market that sellers overwhelmed buyers and pushed price down with buyers unable to sustain the rally, and the selling reaction occurred at a resistance area, answering the how question of the character of price development. Last week was a retest of 4 weeks ago, and we then mentioned how volume was peaking at the high of the rally, another red flag.

A more detailed picture emerges on the daily chart. The early July high was an overlapping of 4 TDs, a sign of a battle between the opposing forces of buyers v sellers. After the 4th day, price broke lower making those 4 overlapping bars an area of resistance to be watched on any retest. The retest came last week.

We made note of how the volume increased as price rallied, and that is a red flag due to sellers increasing their activity to challenge buyers. Price stalled in the beginning of trade for August. We had recommended long positions, previously, and opted to exit at the end of July based on the read we just provided. Price did continue higher from our exit, but after Friday, price is now much lower than the exit. The timing was not pluperfect, but it was effective.

Friday’s high volume accompanied the selling, and that suggests either a retest of the lower end of the TR, or several more TDs before buyers can regain control. Now a read of the opposite is required, how price reacts on the decline to indicate a change in sentiment from sellers back to buyers. Our read says there is no hurry to get long in the paper market.

Silver also had a weekly range of resistance but unlike gold, silver was unable to even penetrate the lower horizontal resistance line, and that said silver was relatively weaker than gold structurally in the charts.

The early price activity warning in early July did not occur in gold as it did in silver. We did not give that bar enough attention because it become controlling for how silver developed in the next month + of trading. The failed swing high, 3 TDs later, did function as an almost precise failed high from last week, and Friday’s lack of upside follow through after Thursday morning’s strong volume rally was the market message that price was sure to correct.

As with gold, there is no hurry to be long in the paper market while the tenor of the current correction becomes more defined.

The ongoing acquisition of physical gold and silver remains as a priority. For sure, there are no cogent reasons for selling anything previously acquired. Buy and hold is the anthem for PM stackers, and that will not change likely for the next several years.

By Michael Noonan

http://edgetraderplus.com

Michael Noonan, mn@edgetraderplus.com, is a Chicago-based trader with over 30 years in the business. His sole approach to analysis is derived from developing market pattern behavior, found in the form of Price, Volume, and Time, and it is generated from the best source possible, the market itself.

© 2016 Copyright Michael Noonan - 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.

Michael Noonan Archive

© 2005-2019 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