Archive for the Technical Analysis Category

Silver Price Could Double by Year End

Posted in Silver, Technical Analysis on February 22, 2012 by JT

Feb 19, 2012 – 08:54 AM

By: Jason_Hamlin

Were you cursing at your computer screen when silver nearly tripled during the short 9 months from September 2010 to May 2011? Silver at $20 seemed like an insurmountable threshold for quite some time. This caused many silver investors to give up just prior to the ascent, completely missing the ride towards $50. I believe silver is about to offer a similar ride. While it is unlikely to match the 180% advance mentioned above, look for silver to make new highs in the coming months, with the potential to double to $65 by year end.Following the record gains in silver during late 2010 and early 2011, the metal crashed towards $25 and has since rebounded to around $33. Investor sentiment has crashed along with it. The threat of Euro nations defaulting, banks announcing they are, well, bankrupt, and a series of other factors have scared away many of the Johnny-come-lately silver bulls.I think too many investors are underestimating the power of the central banks. While I agree they are running out of options, it seems that their ability to kick the can down the road has yet to expire. Given that the United States is heading into election season and President Obama is in full campaign mode, I expect the administration to pull out all stops in order to continue the illusion of economic prosperity a while longer. Every economic fire of consequence is being extinguished with fresh liquidity, more funny money or new legislation. In case you missed it, QE3 has been in full force for quite some time, albeit executed in a somewhat stealth manner.

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via Silver Price Could Double by Year End :: The Market Oracle :: Financial Markets Analysis & Forecasting Free Website.

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I Stand By $140 Silver In 2012

Posted in Silver, Technical Analysis on January 26, 2012 by JT

There is a well-established relationship between how silver and gold trade. They often trade similar in the same time period, but also at similar milestones, although those milestones are sometimes reached at different times. This can cause silver or gold to be the leading indicator, depending on the particular milestone.

I have previously used this relationship to predict how silver will trade. Below, is an extract of that update:

Currently, there is another situation in the silver and gold market that provides an opportunity to predict how silver prices might trade over the coming months. I have pointed this out before, in a previous article. Here, I would just like to provide an update, and add a few more thoughts.

This situation or opportunity revolves around the 1980 all-time high for both metals. Gold passed its 1980 all-time high during 2008, while silver is yet to do so. By looking at the pattern of how gold passed its 1980 high, we can predict how silver might do it as well.

Below, is a comparison of silver and gold around their respective 1980 highs:

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I Stand By $140 Silver In 2012 | SilverSeek.com.

Another Chance to Sell Common Stocks and Buy Precious Metals

Posted in Gold, Technical Analysis on January 25, 2012 by JT

By Jordan Roy-Byrne, CMT

It has been a tough last year for precious metals investors but not so much for common stocks. Sure, the Euro crisis benefited Gold initially but as the panic has abated, stocks are rallying back to their highs while Gold has sold off and the gold stocks are trying to hold their lows. What is going on? Are we in the twilight zone?

Bull and bear markets are long lasting, providing ample time for trends and counter trends to continually reappear and redevelop. The long-term activity of precious metals and common stocks is not a mystery. Gold has continued to hit all-time highs while the gold stocks eclipsed and maintain 2008 highs as support. Yes, common stocks are rallying but are nowhere close to seriously testing 2008 highs. Recently, we noted a potential major bottom in both the metals and the mining stocks. With common stocks nearing major resistance, it is no surprise that we are nearing a point where the secular bull trend is ripe for reemergence.

The chart below shows Gold against the S&P 500. Note the similarity between 2003-2006 action and 2009-2012 action. After surging higher, the ratio retreats quickly but then forms a bottom and builds a base. The ratio has found strong support and won’t be going lower anytime soon. Stocks have had a nice relief rally against Gold but it looks to be all but over.

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via Another Chance to Sell Common Stocks and Buy Precious Metals.

Alf Field: Correction in Gold is OVER and on Way to $4,500+! | munKNEE.com

Posted in Gold, Technical Analysis on January 18, 2012 by JT

There is a strong probability that the correction in the price of gold [down to $1,523] has been completed. The up move just starting should be…the longest and strongest portion of the bull market…at least a 200% gain… [to] a price over $4,500. The largest corrections on the way to this target, of which there should be two, should be in the 12% to 14% range. [Let me explain how I came to the above conclusions.] Words: 760

So says Alf Field in edited excerpts from his original article*.

Lorimer Wilson, editor of http://www.FinancialArticleSummariesToday.com (A site for sore eyes and inquisitive minds) and http://www.munKNEE.com (Your Key to Making Money!) has edited ([ ]), abridged (…) and reformatted (some sub-titles and bold/italics emphases) the article below for the sake of clarity and brevity to ensure a fast and easy read. The article’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. Please note that this paragraph must be included in any article re-posting to avoid copyright infringement.

Field goes on to say, in part:

There is a strong probability that the correction in the price of gold has been completed. In EW terms, [read Gold Bounce Confirms Bull Market Intact on Its Way to $3,000 – $10,000 for another analysis] the correction consists of three waves, an A wave down, a B wave rally and a final C wave decline. There is usually a relationship between the A and C waves. Often they are equal or have a Fibonacci connection. The chart below is of the gold price using PM fixings:

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via Alf Field: Correction in Gold is OVER and on Way to $4,500+! | munKNEE.com.

via Alf Field: Correction in Gold is OVER and on Way to $4,500+! | munKNEE.com.

We are Witnessing a Historic Bottom in Gold: London Trader

Posted in Gold, Technical Analysis on December 21, 2011 by JT

¤ Yesterday in Gold and Silver

Once the gold price broke through the $1,600 level shortly after the London open yesterday morning, it never looked back.  The rally moved along in fits and starts until 11:15 a.m. Eastern time.  Then it more or less traded sideways for the rest of the New York trading session.

Gold closed at $1,615.20 spot…up $21.30 on the day.  Volume was pretty light…around 107,000 contracts.

The silver price basically followed the same type of trading pattern as the gold price.  Silver closed the day at $29.56 spot…up 76 cents.  After a monstrous 50,000 contract volume day on Monday, silver’s volume on Tuesday was a much more subdued 23,500 contracts.

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We are Witnessing a Historic Bottom in Gold: London Trader – Ed Steer’s Gold & Silver Daily.

Euro solution will fail!

Posted in Breaking News, Debt Collapse, Technical Analysis on December 12, 2011 by JT

By the time you read this e-mail, Europe’s leaders will likely have agreed to some sort of solution to its harrowing financial crisis. But whatever their proposals are, they are not likely to work. Not for long, at least.

You’ll want to know why I say that.

Naturally, you’ll also get my latest views on the key markets: Gold, silver, the dollar and the Dow Industrials.

Best wishes

Larry

P.S. Everything I study … every indicator … every trading system I monitor — tells me that 2012 will be one of the most violent, treacherous years for the financial markets, ever. But it also can be one of your most profitable years yet!

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via Euro solution will fail! | Uncommon Wisdom Daily.

Deja Vu? Is Gold Just in a Correcting Phase on Its Way to Parabolic Peak of $4,294?

Posted in Gold, Technical Analysis on December 11, 2011 by JT

The current volatility in the precious metals market doesn’t necessarily indicate a change in secular direction. [In fact,] if today’s gold price was to rise by the same degree over the next 14 months [as it did from the beginning of 1979 into 1980, it would hit $4294/ozt. by Jan 2013! Let me explain.] Words: 420So says Plan B Economics http://www.planbeconomics.com in edited excerpts from his original article. Lorimer Wilson, editor of http://www.FinancialArticleSummariesToday.com A site for sore eyes and inquisitive minds and http://www.munKNEE.com Your Key to Making Money! has edited [ ], abridged … and reformatted some sub-titles and bold/italics emphases the article below for the sake of clarity and brevity to ensure a fast and easy read. The report’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. Please note that this paragraph must be included in any article re-posting to avoid copyright infringement. The article goes on to say, in part:The following chart is a snapshot of gold prices during the 1970s. Between January 1971 and November 1978, gold experienced a number of whopping corrections that sent the weak hands scrambling to cash. Many levered players saw their margins decimated and called it quits…

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via Deja Vu? Is Gold Just in a Correcting Phase on Its Way to Parabolic Peak of $4,294? | munKNEE.com.

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