I'm loving MUX, sure I know I know, it's a Junior. I like the story, I like Rob McEwen, he has been buying, has a huge stake in this and a good historical track record. A few red herring hiccups might discourage some. Fundamentals should see this stock double this year.
We have 3 major trends that will collide next week.
Should get to 1800 next week, then bounce off the primary wave for a healthy correction. But you never know with gold these days. Its quite bullish. If it breaks out of the primary wave, it will go exponential.
Looks as if gold might go down some more this week. Dropped today but the bounce seems to be a bearish wedge. The bounce was support from that trend line on the left. So, if the wedge is real, we should drop again and if that happens that up trend should break as well and could bring the price down even more.
1775ish is a big resistance, it should not get above...
We broke out of the downtrend today, I do think the price will fall in the next few days (profit taking) and then continue to go higher.
Why?
Because Newcrest is forming a very nice inverse head and shoulder pattern.
Technical indicators such as moving averages, MACD, RSI, and DMI are looking good and on the bull's side.
Furthermore, Silver and Gold prices...
When the gold/silver ratio is high, gold is relatively more expensive than silver, by historical standards. Some people use this ratio to trade between the metals.
For a very long-term investor, the trade works like this: when the ratio is high, buy silver, and wait for the ratio to revert towards its mean. Then, sell the silver and buy gold at a better...
Changes in the Gold/Silver ratio indicate changes in the demand for Gold as compared to demand for another precious metal, namely silver. Ratio increases often coincide with accelerations in market volatility and, consequently, money flow to Gold, long considered a "safe haven".
The ratio's climb is approximately linear and the black trend line is consistent with...
Both Silver and Gold are testing the important resistance for the breakout higher, but still, we don't have a break and we should wait for a confirmation of the price action.
Silver is testing an important rising trend line on 4H.
the touchpoint matches perfectly with a horizontal 4H structure.
+the price has perfectly formed a bearish engulfing candle signifying a strong bearish pressure from the underlined area.
on 1H the price has formed a head and shoulders pattern and the breakout of the neckline is confirmed.
now I expect a...
Silver historically has followed gold so according to this chart we should see a massive spike in silver over the next couple months... Past performance is not indicative of future results but this is as close as it gets.
Weekly:
4H Forecast
VERDICT: Observing signs for a reversal at the massive resistance level of {1796} via 4H RSI divergence before executing a short position. Daily RSI already showing bearish divergence.
Silver trapped in a range for Options with Straddles, Strangles and IC or BWB plays over next few days.
A breakout or drop will happen with inverse correlation with SPY. If XAUUSD breaks to new highs (1790?) then see XAGUSD and SLV lag by a few days/hours as well...
