Tuesday , 25 October 2016

Noonan on Gold & Silver: Last Week Was a Preview of Many More to Come

While the world gets bogged down in a financial quagmire, created solelygold rise by the globalists but to be suffered by the masses, those with gold and silver will fare best during the worst of what is to come – and the gold and silver markets are sending a clear message as outlined in the charts below.

The comments above and below are excerpts from an article by Michael Noonan (EdgeTraderPlus.com) which has been edited ([ ]) and abridged (…) to provide a faster and easier read.

Gold: Monthly Chart

Since mid-February, gold has evolved into a 5 month range of overlapping bars…[which] represent a struggle for power between buyers and sellers. While there appears to be a balance between the opposing forces, the balance is only temporary, even illusory, for a winner always emerges.  When you look at volume, you see clues for a likely resolve.  Note the highest volume on the monthly chart [below] was red, denoting a lower close when sellers ostensibly were in control.  Turns out, evidenced by the lack of downside follow-through in June, the exceptionally heavy selling effort by the sellers was fully unsuccessful as buyers overwhelmed selling efforts, took control and have since run up the price to current recent high levels.

Gold: Weekly Chart

The sharply increased volume scenario described above can be more readily seen and understood in the weekly activity as it unfolded [see chart below].  The unabated rally from 1200 to 1360 took most by surprise.  Take it as a shot across the bow for the manipulators that are losing control.

1350+ could be minor resistance, based on the identified failed swing high from June of 2015.  No one knows how any market will unfold, hence the “?” in viewing that price level as possibly minor.

The gold and silver markets are sending a clear message, while the world gets bogged down in a financial quagmire, created solely by the globalists but to be suffered by the masses.  Those with gold and silver will fare best during the worst of what is to come.

GC W 2 Jul 16

Gold: Daily Chart

The developing (chart) picture [below] continues to improve.  Friday’s noted gap opening could be the start of another leg higher.  Maybe it will be filled next week?  It does not matter.  What does matter is how the price structure, supported by positive volume, points to the higher price levels most have been eagerly anticipating.

GC D 2 Jul16

Silver: Monthly Chart

Silver, step-child to gold for so many and suffering a poorer chart structure, relative to that barbaric metal, has been making stealth progress and will likely continue to outperform gold.  The identified resistance around 22 – 23 is the same for both longer time frame charts, so one could expect temporary price hesitation, but that would be normal, even a healthy development, for continuation higher.

SI Q, M 2 Jul 16

Silver: Weekly Chart

For a clear statement made by silver, it absolutely blew right through what appeared to be strong resistance at the 18.60+ level, and it flew right through the small bearish spacing that has weighed and kept a lid on this market. Not any more.  That area will now become support on any retest(s).

SI W 2 Jul 16

Silver: Daily Chart

As an aside, we recommended a long position in the paper market during last Thursday’s evening trading session.  Price was showing weak reactions lower — weak reactions almost always lead to higher prices– volume picked up with price Thursday evening, and that is what prompted jumping into the futures market from the long side.

SI D 2 Jul 16

Gold:Silver Ratio

For as fast as price has rallied in silver, a welcomed and pleasing surprise for those who own this shiny metal, the gold:silver ration has greatly improved favoring silver as we have been saying all year.  It was 84:1 several months ago.  We used our own exchange of some gold for silver a few weeks back when the ratio was 75:1.  As of Friday, it stood at just under 68:1.

We expect to see that ratio to favor silver in the years ahead, eventually reaching anywhere from 40:1 to its historic relationship of 15:1.  The market will make that final determination.


Last week was a good week.  We see it as a preview of many more to come.  Keep on buying physical gold and silver, and we continue to favor silver over gold for the ratio play.

The clock of financial doom keeps inexorably ticking away, and anyone unprepared by not having gold and silver, including those who have either, or both, but is still holding back on adding to their stash, is playing a fool’s game.