On this fine Sunday, I thought it might be good to share a weekly look at the gold and silver markets.
One way to look at GOLD is to see the potential for the forming of a "Bull Flag". The $1850 level has been tested three times in the past few weeks. Each attempt by the BEARS to break this level has been repulsed, so far. In the event that this level is breached, then look for the next target level between $1780 and $1790 per ounce.
Silver is narrowing in on an ever tightening range. And from tight ranges come big moves. The real question remains which way the market will break. The silver market is looking, at least to my eyes, stronger than the GOLD market.
On the weekly chart the miners got very close to the lower Bollinger Band. Also note how the Bollinger Bands are coming closer together which indicates a tightening of the range. It seems to me that the headwinds continue to be against the miners.
I have started to follow the moonbeams. The theory is that the moon cycles have an effect on the gold and silver market.
On October 30th the moon was in Apogee (meaning it was the farthest away from the Earth). Gold rallied from $1863 per ounce to $1966 per ounce.
Saturday November 14th, the moon was in Perigee (meaning the closest to the Earth). So the question is: Was the Friday high a temporary high soon to be followed by a break down towards the $1780 level?
It is all just for fun, but it will be interesting to watch.
On Election Day I said the following:
"Given that today is Election Day and barring a blow out I do not believe we will have a declared winner for weeks, expect volatility in the markets and as weird as it sounds, on the streets."
Are you enjoying the show?
Have we had volatility in the markets? I would say so!
Do we know who won the Presidential race?
This morning from President Trump:
Have we seen volatility on the streets?
Why yes we have! Hundreds of thousands of Trump supports gathered in Washington yesterday. Antifa and BLM, showed up as the Sun was going down. The mix was predictable, with fights and scuffles breaking out on the streets.
Peace out and stack on!