XAUXAG - Shining through
Updated
The multi year trendline was broken this summer .
The drop broke below 69 at the end of August. On the daily chart I was waiting for the tag of the 200 SMA it never happened though.
That's why I suggested to short silver this autumn. But XAUXAG was so week in the previous 4 months that it was only able to back test the multi year trendline and the 200 SMA on the weekly chart and now it's heading lower again. So silvernot really dropped when gold was in the decline mode weeks ago.
So what does it mean?
You already know what is my take on gold in the following few months.
I think gold is going to break the summer high and will rally to 2400.
If I'm right and the XAUXAG is breaking down silver will print a legendary rally during the next few months.
This summer we broke below 69.
69 is already close to the 2016-17 correction zone (64,5-67,5) As we turned down immediately from the weekly 200 SMA - and the trendline - in 2020 September I need to assume that the whole correction this autumn was only a bear flag what broke down:
... and we will take out 69 and 64 too...
After 64 the next level to be tested is 56,8.
If I'm right and gold is going to 2400 $ next year a minimum target for silver is 37,5$ if XAUXAG tests 64. In the case XAUXAG drops further to 56,8 the price of silver will hit 42$ what is a 60% rally from here...
The drop broke below 69 at the end of August. On the daily chart I was waiting for the tag of the 200 SMA it never happened though.
That's why I suggested to short silver this autumn. But XAUXAG was so week in the previous 4 months that it was only able to back test the multi year trendline and the 200 SMA on the weekly chart and now it's heading lower again. So silvernot really dropped when gold was in the decline mode weeks ago.
So what does it mean?
You already know what is my take on gold in the following few months.
I think gold is going to break the summer high and will rally to 2400.
If I'm right and the XAUXAG is breaking down silver will print a legendary rally during the next few months.
This summer we broke below 69.
69 is already close to the 2016-17 correction zone (64,5-67,5) As we turned down immediately from the weekly 200 SMA - and the trendline - in 2020 September I need to assume that the whole correction this autumn was only a bear flag what broke down:
... and we will take out 69 and 64 too...
After 64 the next level to be tested is 56,8.
If I'm right and gold is going to 2400 $ next year a minimum target for silver is 37,5$ if XAUXAG tests 64. In the case XAUXAG drops further to 56,8 the price of silver will hit 42$ what is a 60% rally from here...
Note
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.