SILVER | THE BIGGEST CUP & HANDLE OF ALL TIME!Apple’s Cup and Handle pattern in the early 2000s is often cited as one of the most significant. After a prolonged downtrend, Apple formed a large cup with a handle from 2000 to 2005, which, after breaking out, has continued to appreciate to this very day. However, Apple's pattern is nothing compared to the current Cup & Handle pattern that exists in silver, whether in size or price.
I truly believe that silver is currently the most undervalued asset and will not only attain higher prices than most can imagine but will also rapidly begin to appreciate against gold, which currently has a ratio of 83.75 to 1. This ratio is irrational and unsustainable, as gold and silver are typically mined at a ratio of around 10 to 1. Even current U.S. Treasury Mint coins—Silver Eagles and Gold Eagles—have a current exchange rate of 50 to 1 at face value. Historically, under the gold standard and the Coinage Act of 1834, the ratio was set at 16 to 1.
Although this will not happen overnight and could take a decade or more to come to fruition, the unnatural and irrationally low price of silver is coming to an end. The overinflated gold-to-silver ratio will continue to fall as price manipulation ends and true price discovery begins.
Silvergoldratio
75: Silver Analysis: Is it Lagging Behind Gold?Silver, often considered the "poor man's gold," has been under scrutiny lately as it seems to lag behind its more illustrious counterpart. Traders and investors are closely monitoring silver's behavior relative to gold, seeking potential opportunities amidst this divergence. Let's delve into the technical analysis to discern potential trading scenarios.
Currently, silver is hovering around the $24 mark, displaying a notable gap in performance compared to gold. This gap prompts us to consider whether silver is presenting a buying opportunity or if further downside is expected.
Long Entry Points:
Primary Entry: A compelling long entry presents itself around $23.37, where historical support levels align. This level could serve as a strong base for a potential bullish reversal.
Secondary Entry: For more conservative traders, a secondary entry around $20 offers an additional opportunity. This level provides a wider margin of safety but may require patience as price action stabilizes.
Potential Scenarios:
Bullish Continuation: If the support at $23.37 holds firm, we anticipate a bullish continuation towards $30 and beyond. This scenario would validate the long positions and affirm silver's potential to catch up with gold.
Bearish Breakdown: However, if $23.37 fails to hold, a deeper retracement towards $15 becomes a possibility. Traders should closely monitor price action and consider implementing risk management strategies to mitigate potential losses in such a scenario.
silver's divergence from gold presents both challenges and opportunities for traders. With long positions eyed around $23.37 and a secondary option near $20, traders can capitalize on potential bullish reversals. However, vigilance is crucial, as a failure to hold support may result in further downside towards $15. Ultimately, a successful hold at support levels could pave the way for a rally towards $30 and beyond.
As always, traders are advised to conduct thorough research, manage risks prudently, and adapt to evolving market conditions. Stay tuned for further updates as we navigate through the intricacies of the market. Happy trading!
SILVER/GOLD ratio showing Gold will outperformThe Silver/ Gold ratio on the 1W time-frame shows the price trading within a Triangle pattern, with the price almost reaching the top two weeks ago and currently getting rejected. On the long-term, the break-out of this pattern will determine the next trend so be prepared but as long as it holds, then Gold (XAUUSD) should outperform Silver (XAGUSD) within the next two months. The MACD also supports that scenario as it is at a similar level it was on the February 22 2021 High.
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$SILVER - STILL WAITING FOR THE SHORT SELL AREA.$SILVER - STILL WAITING FOR THE SHORT SELL AREA.
It has been a nice run from the $17 range where I bought my first #silver bags.
I think Silver can perform well from a macro perspective but the $25.50 range will be strong resistance.
Are you owning any precious metals?
GOLD SILVER RATIO as a guide for TRADING DECISIONSCenturies ago when the gold and silver standards existed the Gold to Silver ratio was
fixed at 15. Decades ago the ratio was 55. The US dropped the gold standard in 1971
( Thanks Richard Nixon ?) In floating since then, the ratio in modern times has been 75/
It can be said that below 75 gold is undervalued in comparison with silver while
over 75 it is overvalued in comparison.
At present since April 15th ( IRS demand tax returns and payments) the ratio has
consistently risen.
Trading Ideas from this:
Traditionally, an investor would now sell gold and buy silver at a ratio of 75 to 1
meaning sell quantity of gold for instance 5 ounces and then buy 375 ounces of silver
with the proceeds.
Using the XAUUSD and ZAGUSD, a swing trader would short sell spot gold
and go long on spot silver.
An options trader would buy a put contracts in a gold junior miner stock and
then hedge with call contracts of equal value in a silver junior miner stock
The above, are basic examples of how to use the gold to silver ratio as a basis
in trading decisions. The link below is a more detailed explanation of this.
SILVER MONTHLY - GOLDEN POCKETSilver is about to reach a macro fibonacci golden pocket, this could be a good time to buy silver (preferably physical silver).
Make sure to do your own research, this is no investment advice.
Forecasts and forward-looking statements always involve risks and uncertainties.
Some things you might want to look at:
Gold/Silver Ratio
Silver/SPX Ratio
Silver Marktcap compared to Gold
RIsk of a silver ban compared to a gold ban
Silver/Gold ratio: Silver is stretched compared to GoldI love the setup in the Silver/Gold ratio here. Big upside with super low downside risk if you trade it as a pair, going long 1 lot of Silver futures vs 1 lot short in Gold futures. There was a 14 week down trend signal that expires today, which predicts a relief rally of 14 weeks could occur starting here. The daily chart has a bullish trend signal confirming today as well. See the stop loss recommendation on chart, it is a 2.1% downside risk in the ratio, so, size your trade accordingly.
Best of luck,
Cheers.
Ivan.
All cycles for gold are up on a weekly basis.To support a strong up move in silver, gold should be performing as well.
Reasons why gold will be performing and could retest August highs on the last week of February, and after making a pull back into early March creating a cup and handle pattern - storm to 2500 by April:
1. During March - November period gold has made a 9 month long picture perfect bull flag. Shows us that the longer term trend is up and buying power is larger than the selling power.
2. All cycles are up and as long as we don't close below 1807 weekly basis - the up move will continue.
3. A move to recent highs at around 2050 (if occurs) will be stopped by the previous support line, a double top against the high and the smallest cycle being down for about one week at that period. Now as I remind you - now cycles are up and unless gold shows weakness closing below 1807 - we are long. To change the monthly trend - gold has to close below 1764 monthly basis.
4. A move to around 2500 will be +37.5% from 1764 - bull flag low and cycle low at that point. Division of the dollar into 8 parts gives us natural points of support and resistance and we use this information to figure out a few facts. Firstly, percentage terms - 37.5% is 3/8 of 100. Meaning that we use the lows and highs - add or subtract - 1/8, 2/8, 3/8 etc. (i.e 12.5%, 25%, 37,5% etc.) and as a result get points where potential resistance/support will be. Secondly, we use the division of the dollar into eighths to get the nominal price resistance, once we go above 1 dollar - natural points of resistance become 1.125, 1.25, 1.375, 1.5, 1.625, 1.75, 1.875, 2, 2.125, 2.25, 2.375, 2.5 (or 2500) . I hope this makes sense and you will try applying this method and prove to yourself that it works in most cases.
5. The pink trend line is the price projection taken at an angle which is = to the angle of the up leg inside the bull flag. To get the date where it will stop the up move we use the information given by cycles and observe that by around mid April where cycles top for some time in both gold and silver the trend line gives a point at around 2500 - natural point of resistance given by the previous rule.
6. Stay tuned for the XAUXAG update where I will combine my price targets for gold and silver and their cycles dates to check if the ratio gives us the same result according to its own cycles and points of resistance.
Please remember futures trading involves a substantial risk of loss and is not suitable for all investors.
SILVER will heavily outperform GOLD in 2021I've looked into the SILVER/GOLD ratio a few times in the past and I can tell with a certain degree of confidence that we have a strong confirmation that Silver will outperform Gold in 2021.
The reason is the MA50 (blue trend-line) on the 1M chart, which broke earlier this year and since August has turned into a Support. Since 1993, every time that happened (1M MA50 break-out which then turns into Support), then the Silver/ Gold ratio rises aggressively, meaning that Silver heavily outperforms Gold.
Note that the last two times this happened, the ratio topped just over the -1.5 Fibonacci extension (from the bottom to the break-out of the MA50). The -1.5 Fib extension is now at 0.025.
Do you think history will be repeated?
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Last Dip Before TakeoffBeen stacking at the lower levels, but hoping markets breathe a sigh of relief after the election, causing a dip in Silver to around $21. After that, should be on a tear to $47 over the next year or so. Silver of course DOESN'T have to dip to go to $47, just hoping it does for a good buy opportunity.
Silver will continue to outperform Gold Hi Guys
I bring you here the gold/silver ratio, we played this game beautifully selling Gold for silver at 118:1. It is currently 72:1.
In the short term I can see it testing 82:1, but as you can see here it had broken the 200 Week moving average about 3.5 weeks ago.
Previously the Ratio was below the 200WMA for 128, 202, 14 weeks respectively. With the biggest drop of 47% from OCT 10 - April 11
Since we hit record highs of 126:1 I expect the closeness of the Ratio to be closer, Making Silver Still an acceptation Buy
Gold to reassert strength short termSilver has had a strong leg against gold
Not overextended yet, but wouldn't be weird to have a common retrace to common fib zones
Expecting continuation of silver strength but needs a breather short term
GOLD/SILVER RATIO - What does this mean? SILVER THE NEW GOLD?!It simply means silver is better to buy performance wise than gold.
Question is Silver could be the new gold?
How & Why?
Silver is seen as a better reflationary asset a hedge given from industrial and tech applications
Most of half the silver material is used in tech electronics such as connections, wires and jewellery
Silver is out performing gold
Large institutions think we could get price of 25-30 for silver in the long run.
I'd wait for pull back in most of the commodities.
Just an idea, not a recommendation.
Most Bullish Chart for Silver70:1 GOLD/SILVER ratio is the average ratio when silver is treated as an industrial metal. However, if you believer Silver will be receiving monetary investment demand, like Gold has been, then 70:1 may become the neckline for a much more aggressive silver price and a ratio closer to 20:1 in Silver's favor.
That means if Gold hits $3,000 an ounce like Bank of America forecasts, then Silver should hit $150 an ounce with a 20:1 gold/silver ratio.
Silver 4Hr Uptrend ChannelMy fundamentals and technical analysis suggest the Silver is on an uptrend channel. Gold-Silver-Ratio indicates a strong dislocation in the precious metal market. Silver bounced back from 11.6 to 16.11 (at the 0.618 Fibonacci retracement line). Using a Pitchfork, I drew the upward trend crossing through the middle of multiples tops and lows since the 18 March (the pitchfork trend limits also match the Fibonacci Fan lines, but I did not draw it for the avoidance of confusion). Finally, there is strong support at 15 but it breaks the upward trend. My options are: A) To wait for a retrace to 15.4 and going long with SL at 15 and TP at 17.65. B) to wait for the next wave: Silver strength continues to the 16.3 and retraced to the pitchfork lower band of 15.8 before the next big move to the 18.2. Any comment?
#Gold/EUR #XAUEUR - intermediate/long term analysisDue to fundamental reasons (trade tariffs, sudden currency devaluation of the Yuan and stock market crash) impulse wave 5 of Gold has broken through the blue doted resistance trend-line and is near its ATH (Gold/EUR chart).
However, there are 3 other strong resistance lines:
- dashed violet resistance trend line (currently around €1360.-)
- horizontal ATH resistance line (~ €1387.-)
- bold violet resistance line (currently around €1424.-)
According 1D, 1W and 1M momentum indicators it looks like Gold is losing its bullish momentum, also RSI and MFI are very overbought on all time frames.
(also short-term H4 and 1D at the moment o writing)
Therefore, I think Gold will be too week to break through the dashed violet line (~ €1360).
Also on the USD chart Gold is fighting with a resistance trend line.
Therefore, I think a good short opportunity will arise soon (as soon as stocks go up again) ;-)
Furthermore, I have found a “Hanging Man” in the Gold/Silver ratio chart (@1W TF) which is a bearish reversal signal.
This means that Gold is losing strength compared silver regardless of FIAT currency manipulations and currency wars.
This is a long-term signal and a perfect swing trade opportunity to exchange Gold into Silver. But unfortunately silver is taxed whereas Gold is tax-free in my country.
Keep in mind that technical analysis cannot predict exogenous risks.
This means when for some fundamental reasons there is a fire sale in stocks markets, then Gold and Silver will rally because these are safe-heaven assets with negative-Beta correlation!
Also when Gold is losing strength compared to Silver it can still go higher in terms of FIAT valuation / fake currency.
(in a very bullish scenario Gold may hit Fib extension 0.272 which is at €1446! )
I will start to buy PHYSICAL Gold again when it comes near the accumulation zone between €1213 - €1115 in the end of this year or during 2020.
In an economic collapse wealth cannot be stored on fake assets. Keep in mind that China and Russia has quadrupled their Gold reserves since 2009!
Be patient and do not FOMO. Emotions are a money killer!
I´m not a financial adviser. For educational purpose only!
Gold/Silver Ratio: RSI + Bollinger Bands = Buy or Sell?We only have data stretching back to 1998, but from what we can see, it seems quite clear when has been a good time to buy and sell silver.
The question is: will it continue? Are the RSI and Bollinger bands reliable indicators for future buy and sell points?
Any thoughts or discussion points? Fire away.
Silver Gold Ratio Bottoming outSilver Gold ratio is near bear market lows/bottom.
This is the Monthly chart and a double bottom and higher low was recently seen on the ratio with a monthly hammer candlestick.
We may be pretty close to a final low bottom in the silver and gold. Gold may swing down one more time to near 1000, however miners may hold up better.
This low in the metals seems to be coordinated/opposite to a major final high in the USA stock market.
