Today a remarkable prediction on the silver market is now unfolding as the price of silver tumbles and the man who predicted it issues a major update on the silver market.
But first, Fitzpatrick’s remarkable (August) silver prediction from July 7, 2016…
Tom Fitzpatrick: As we have seen so far in 2016, Silver likes to retest the break(out)…The price action pattern would suggest we trend lower to test the $17.70 – $18.01 support area sometime in August.
Fitzpatrick reiterated his warning on silver one week later – July 14, 2016…
Tom Fitzpatrick: The important pivot to watch here (on silver) is $19.23. A close below there would be a bearish break and could see a move down to support levels in the $18 area (see chart below).
Fast forward to today’s call from top Citi Analyst Tom Fitzpatrick…
Top Citi analyst Tom Fitzpatrick: “Silver saw an aggressive move through support around $19.15 – $19.22 overnight as the recent range of lows and the 55 day moving average has been taken out, though confirmation with a close below those levels still needs to be seen.
If confirmed, it would open the way towards horizontal levels around $17.78 – $18.01.
Net non-commercial combined futures positions on silver are beginning to come off from record peak but silver still remains a crowded trade (see silver long positions on the chart below, which are near all-time record levels).”
King World News note: Also, see 23-year COT chart below showing near-all time commercial short positions in the silver market.
King World News note: Fitzpatrick is bullish on silver, but what he is saying is that silver may briefly move lower to test the breakout, before continuing its advance. It’s important to understand that as the Gold/Silver ratio began to trend in favor of silver, this was yet another indication that the bull markets in gold and silver were well underway. For KWN readers around the world who are looking to accumulate physical gold or silver, remember to use the pullbacks to accumulate precious metals, rather than chasing price. Having said that, it is also important to remember that in bull markets almost all of the surprises take place on the upside — think Brexit and how it propelled gold and silver prices higher.
***KWN has now released the riveting audio interview with Egon von Greyerz CLICK HERE OR ON THE IMAGE BELOW.
***Also just released: The Panic That Will Be A Game-Changer For World Financial Markets CLICK HERE.
***Also, to listen to the incredibly brilliant Peter Boockvar discuss the gold and silver markets, major catalysts for radical change in global markets, what investors should be doing to protect themselves and much more CLICK HERE OR ON THE IMAGE BELOW.
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