Today one of the greats in the business told King World News to expect fireworks in the gold and silver markets as an upside explosion is close at hand.
Great Day For Gold & Silver
May 3 (King World News) – James Turk: It’s been a great day for the precious metals, Eric. And I will add that it is long overdue…
This company just made a gold acquisition that is worth 7-8 times what they paid for it and is now set up for monster upside in 2021! To learn more click here or on the image below.
As usual, the metals were stuffed last week for the usual reasons – option expiry, the FOMC meeting and month end marking-to-market. So it is good to see them come to life today, particularly because many markets around the world are closed for May Day celebrations.
What’s important from today’s action as I see it, is that some technical indicators are kicking in. Also, try as they might, the shorts could not break the precious metals last week.
Silver – The Big Mover
I would like to focus on silver because it was the big mover today, which is not surprising. The gold/silver ratio is still abnormally high, so it is reasonable to expect silver to outperform gold, though obviously I am bullish on both precious metals as well as the companies that mine them.
The chart shows the daily closing price for July silver. I added in silver’s support at $26 and overhead resistance at $28.
Support Levels Held As Silver Prepares
To Attack $28 Breakout Area
A lot of traders like to see harmony with the moving averages. So I have also added in the 200-day moving average to this chart of July silver, and two points are important.
Note how this moving average was repeatedly tested in April and then tested again last week. It is important that support held. It shows the long-term thinking of people holding silver. They have not been shaken out even though silver – and gold too for that matter – are still stuck in sideways trading ranges.
These trading ranges are frustrating when we can see all the inflationary price rises in just about everything else. Nevertheless, given that support has held we can conclude that silver is in strong hands, which I believe means that silver will eventually break out above $28.
Second, the moving average itself is in an uptrend, which is pointing out the primary trend in the silver price. I always like to be in harmony with the primary trend, which is a well established uptrend.
Expect Gold & Silver Fireworks
So the big question, Eric, is whether May will be the month that gold and silver finally break out of their trading ranges and jump higher to catch up with all the other inflationary price increases? Hopefully, this will indeed be the month that gold and silver finally hurdle $1800 and $28. Expect fireworks when they do.
***To listen to legend Steven Dean discuss what to expect next in the gold and silver markets as well as what he is doing with his own money CLICK HERE OR ON THE IMAGE BELOW…
***To hear Alasdair Macleod give another incredible look at the situation in the gold, silver, and mining share markets CLICK HERE OR ON THE IMAGE BELOW.
© 2021 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. However, linking directly to the articles is permitted and encouraged.
