Today top Citi analyst Tom Fitzpatrick sent King World News a major update on the action in the gold & silver markets.
But first, Fitzpatrick’s perfect March 9th bullish call on commodities…
Top Citi analyst Tom Fitzpatrick sent KWN this note on March 9th, when he turned bullish on commodities: The Continuous Commodity Index (CCI) rallied through the top of the channel and has a reverse head and shoulders pattern that targets 395. Overall the chart below is pointing towards a positive market outlook (for commodities) (see chart below).
Fast forward to today’s call from top Citi Analyst Tom Fitzpatrick…
Tom Fitzpatrick: “The silver weekly chart is no longer making lower highs (see chart below).
Silver has tended to retest the breakout levels since setting its trend low last December. It did this in February and June. A continuation of this trend would leave opportune silver levels in the $17.70 – $18.01 support area (see chart below).
Nevertheless, at this point and with price having held support well, it would take a daily close below $19.22 to suggest this move lower could occur. Otherwise, the trend (higher) is your friend.
The Gold/Silver Ratio suggests silver should continue to outperform and that is consistent with an overall bullish commodity and local market environment (see chart below).
Gold has held support in the $1,304 – $1,308 area well and topside resistance does not come in until the $1,391 area. A daily close below the noted support levels would be a cause for concern, suggesting price could make its way towards the mid-$1,200s (see chart below).
Gold and silver have set a trend low at decent long-term support and look to ‘return to the mean’ of the historical steady uptrend. This generally means a higher price, but not necessarily at the same pace of the last few months.”
King World News note: Fitzpatrick is bullish on silver and gold, but what he is saying is that it is possible silver and gold may briefly move lower to test the breakout, before continuing their advances. It’s important to understand that as the Gold/Silver ratio continues to trend in favor of silver, this is yet another indication that the bull markets in gold and silver are 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 just released the jaw-dropping interview with the man who advises the most prominent sovereign wealth funds, pension funds, hedge funds, and institutional funds in the world CLICK HERE OR ON THE IMAGE BELOW.
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