The market has not changed materially over the past many weeks/months and, as long as the market has not changed, expectations that the price of gold and silver should not change, either. Expectations are future hopes/plans that may or may not ever be realized. Present market conditions are the reality of what is, without getting into the mental gymnastics about the degree of reality reflected in the charts. Market activity trumps everything, and one works with that reality or risks substantial loss by favoring opinion/hopes/expectations. Below is what the charts are saying today.
The above introductory comments are edited excerpts from the original article* by Michael Noonan (edgetraderplus.com) entitled Gold And Silver – Use “Magic” Of Gold/Silver Ratio To Greatly Increase Your Physical Holdings. Here is an edited version.
The following article is presented courtesy of Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!), and www.FinancialArticleSummariesToday.com (A site for sore eyes and inquisitive minds) and has been edited, abridged and/or reformatted (some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. This paragraph must be included in any article re-posting to avoid copyright infringement.
Noonan goes on to say in further edited excerpts:
Gold – Weekly Chart
There is nothing overt that stands out on the weekly chart. The fact that price closed in the middle of the TR (Trading Range), means that the level of information is at its lowest. Price can rally to the resistance area and fail, or decline to support and fail to go lower without violating the integrity of the TR. Buying or selling in the middle can be costly, either way.
Gold – Daily Chart
The D/S (Demand overtaking Supply) bar continues to hold as potential support. Gold has declined deeper into its D/S bar relative to silver, but it is doing better than silver by testing the upper channel line and holding the 50% on this decline. Price making a lower high and lower low puts the daily up trend in question. It looks like more of the same in the week(s) ahead.
The chart comments say what there is for silver. The trend remains down and rallies are not sustained. It is possible that the D/S will turn into a valid change of behavior and lead to a change in trend, but confirmation almost always comes after the fact…One has to wait for confirmation of the change and no try to (usually wrongly) anticipate it. In a down trend, time favors the sellers, not the buyers.
Silver – Daily Chart
Where it looked like the daily performance in silver was relatively strong the past two weeks, Thursday changed all that with another strong sell day followed by a relatively weak rally. As with gold, there is nothing definitive for silver, either.
For physical holders, adding at current prices is almost imperative for those who continue to buy…
Editor’s Note: The author’s views and conclusions in the above article are unaltered and no personal comments have been included to maintain the integrity of the original post. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.
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