Short
SILVER: Expecting Sharp Decline; Possible Gap Down Sunday
Updated
Just like Gold, I am expecting a sharp decline from what has been a rectangular consolidation zone. It is possible both Gold and Silver, especially Silver gap down on Sunday.
While in the long-term I am extremely bullish on both Gold and Silver, with a likely re-test of the lows in equities - and possibly another new lower leg - precious metals will sell-off for liquidity.
Based on technicals and fundamentals, including that of COT numerical data, the number of commercial shorts are still extremely elevated, and it is likely higher volume from the 'big whales' will come in within the next week and sell precious metals as the liquid assets they represent.
I believe Silver will likely bottom before May somewhere around 9.5-10.5 and Gold around 1390.
- zSplit
While in the long-term I am extremely bullish on both Gold and Silver, with a likely re-test of the lows in equities - and possibly another new lower leg - precious metals will sell-off for liquidity.
Based on technicals and fundamentals, including that of COT numerical data, the number of commercial shorts are still extremely elevated, and it is likely higher volume from the 'big whales' will come in within the next week and sell precious metals as the liquid assets they represent.
I believe Silver will likely bottom before May somewhere around 9.5-10.5 and Gold around 1390.
- zSplit
Note
Silver has broken from its rectangular consolidation as expected and as I accurately predicted once again.Silver will retrace back to the 12 buck level and likely continue lower throughout the next 4-6 weeks overall and bottom somewhere around 8 and 10 dollars.
I will provide updates based on micro/macro analysis throughout April.
Remember that the corrective cycle in Gold and Silver won't end until sometime in mid May. Therefore, if we reach below 12.00 before this date, we can expect levels closer to 8 or 8.50 at-least.
Theoretically as low as 6 or 6.50 is possible, however I do not forecast a value that low at this time.
- zSplit
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