Close X Cookies are necessary for the proper functioning of 24hGold.com. By continuing your navigation on our website, you are accepting the use of cookies.
To learn more about cookies ...
EnglishFrench

Silver And Gold Are Ready To “Tip” Their Hand

IMG Auteur
Published : April 25th, 2013
500 words - Reading time : 1 - 2 minutes
( 12 votes, 1.9/5 ) , 3 commentaries
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
3
comment
Our Newsletter...
FOLLOW : Gold, Silver

I want to discuss what I’m seeing in the silver and gold charts now that I’ve had a chance to review them in greater detail after the dramatic two day plunges we say over a week ago.

I see clear bear pennants forming in both charts that indicate lower prices are on the way.  The selling is not over.

First let me preface this by discussing what exactly a bear pennant is. A bear pennant is seen at various parts of a stocks or equity’s trend. I feel that what has formed in both the gold and especially the silver chart is a bear pennant at the beginning of a downtrend.  The usually definition of such a formation usually requires that the pennant starts to form after a brutal “two day plunge” as we saw when silver and gold sold off. After a dramatic two day plunge, the market has a short-lived consolidation period before the rout continues. We must have volume confirmation of the downward break which we clearly had in both metals.

Let’s see how this applies to the silver chart.  You can see that silver has formed a bearish pennant indicating that the market is simply pausing before the continuation of the trend or initial move. I maintain that we probably see 17.50 – 18.00 before the bleeding is over as I have discussed in my previous posts.

24hGold - Silver And Gold Are ...

As for gold, it has formed a bearish flag.  This is similar to a pennant in that it occurs after major break in direction.

The bear flag occurs in down trends and is exactly the same pattern as the bull flag, simply flipped upside down. The lines which form the flag can be either flat or pointed upward, and the pole of the pattern is then formed by a line encompassing the move downward which sets up the bear flag consolidation. The pattern is seen as the market potentially just taking a “breather” after a big move downward before continuing its move downward and is therefore referred to as a bearish pattern.

24hGold - Silver And Gold Are ...

I am of the view that simply by observing the candlesticks in the silver chart especially, that this consolidation following the big break down is just about complete and we should see a resumption of the move down. It would take a close above $1,441 to place confidence in a possible test of the next fib at $1,470.  Conversely, if we fall beneath the flag line, we could make a move to re-test the lows put in after the sell-off.

Silver in my view looks weaker.  It would take a close above the pennant’s top line to negate the pattern and send silver up to its first fib level. Conversely, a break, and we could easily be on the way to test the sell-off lows pretty quick.  I am of the view that we are simply pausing here before we break lower in both metals.  I would need strong conviction to the upside to change that view. 

Companies Mentionned : Metals X |
<< Previous article
Rate : Average :1.9 (12 votes)
>> Next article
Latest comment posted for this article
Was silver's monster pop on Thursday enough for you to change your bearish prediction Danny Boy? Sour grapes are on the menu for you! Read more
ccmhi - 4/28/2013 at 12:52 AM GMT
Rating :  1  0
Top articles
Latest Comments
The Crash of the Bank of the Uni...
01 Augsam_site
AN ASTOUNDING EXPOSURE What no one recognizes to this day is that the Fed stole America's gold and shipped it to Germany causing b...
Iran Agreement Boosts Peace, Def...
29 JulArtboard
A US Naval vessel shot down an Iranian Passenger Jet with 300 passengers, over the Persian Gulf on the 3rd July 1988, they mistook it for a Fighter...
Will Uncle Sam Confiscate Gold A...
31 Julovertheedge
"... , generally larger amounts would be safer stored in the safest vaults in the world and in the safest jurisdictions in the world." An...
Gold market liquidity and manipu...
29 JulPD
Bron, I was wondering if the planned Allocated Bullion Exchange (ABX) would have any impact on the liquidity of the Gold market. Would it not at le...
Is the gold price manipulated?
29 Juldanzas1231
This article is a joke. Please stop writing baseless garbage. There is enough real evidence of the things you're still calling conspiracy. GATA hav...
Is the gold price manipulated?
28 Julkeith952
... if one takes the dumping of an usually high tonnage of gold at an illiquid time in the gold market aka the Monday one week ago - then such 'b...
Gold Reserves and GDP: China is ...
30 JulWilliam Tan
Shakespeare was right; "The world is a stage." Unfortunately we have all the bad actors acting at once.
Iran Agreement Boosts Peace, Def...
28 Julsonora69
You have a point. The 2003 Iraq invasion is mostly now considered an ill-advised and unjustified destabilization, with regional & political consequ...
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS
Mining Company News
Vena Res.(Ag-Au-Cu)VEM.TO
Provides Update With Regards to the Arbitration Concerning the Azulcocha West Project and Enf
CA$ 0.04-35.71%Trend Power :
Exploration and drilling
Rockwell(Cu-Gems-Ni)RDI.TO
Announces Delay in Annual Meeting and Meeting Date
CA$ 0.20-2.44%Trend Power :
Corporate news
Eldorado Gold(Au-Fe)ELD.TO
Reports 2015 Second Quarter Financial and Operational Results
CA$ 4.50+11.39%Trend Power :
Financials
Endeavour Financial(Ag-Au-Co)EDV.TO
Mining Q2 2015 AISC/oz of $898, Profit of $33M And $20M Debt Payment in July
CA$ 0.51+8.51%Trend Power :
Corporate news
Mawson Res.(Au-Ur)MAW.TO
Restarts Drilling at the Palokas Gold Prospect in Finland
CA$ 0.17+6.25%Trend Power :
Corporate news
Goldcorp(Cu-Le-Zn)G.TO
Achieves Record Quarterly Gold Production; Updates 2015 Cost Guidance
CA$ 17.45+6.01%Trend Power :
Production
Claude Resources(Au-Cu-Ngas)CRJ.TO
Provides Date for Q2 Results and Conference Call
CA$ 0.65+3.17%Trend Power :
Corporate news
Richmond Min.(Ur-Au-Gems)RMD.V
- Exploration Update
CA$ 0.09+0.00%Trend Power :
Corporate news
Arianne Phosphate(Ur-Mo-Ti)DAN.V
Extends the Term of Warrants
CA$ 0.88+2.33%Trend Power :
Financings
Anaconda Min.(Au)ANX.TO
Reports 12.83 g/t Gold Over 4.38 Metres and 8.55 g/t Gold Over 4.97 Metres from Channel Sampl
CA$ 0.05+25.00%Trend Power :
Corporate news
Comments closed
  All Favorites Best Rated  
Was silver's monster pop on Thursday enough for you to change your bearish prediction Danny Boy? Sour grapes are on the menu for you!
Rate :   1  0Rating :   1
EmailPermalink
Well.....I dunno. I have exactly the opposite view. I hope I'm right.
Rate :   2  0Rating :   2
EmailPermalink
Fair enough reasoning here. A retest of the lows is a good possibility

Now Dan...show us "substantiated" proof where you actually make a trade on the short side of gold or silver,should a break occur.
Rate :   2  0Rating :   2
EmailPermalink