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Chris Vermeulen
gold, silver

After nearly 3 weeks of sideways/downward price action in Gold and Silver, our researchers believe both metals have already setup another breakout/rally attempt after breaching downward resistance (shown as the downward sloping CYAN line). For precious metals bugs, this could be another huge opportunity as the next move higher should prompt a rally above recent highs. That means a target price level in Gold above $2100 and a target price level in Silver above $30.50.

ARE METALS POISED TO RALLY TO NEW HIGHS SOON?

The deep price retracements recently in both Gold and Silver have come from news events. First, the EU Banking Report that destroyed the market on September 21. Then, just recently, the news that President Trump contracted COVID-19. The resilience in both Gold and Silver near these recent lows suggests demand for metals is still skyrocketing – otherwise we believe much deeper price lows would have been reached.

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If our previous research is correct, this current basing/bottoming pattern could be the beginning of an explosive upside “appreciation” phase in precious metals. Please take minute to read the following past research post from our team.

Sept 27, 2020: GOLD AND SILVER FOLLOW UP & FUTURE PREDICTIONS FOR 2020 & 2021 – PART I

Sept 28, 2020: GOLD AND SILVER FOLLOW UP & FUTURE PREDICTIONS FOR 2020 & 2021 – PART II

We expect Gold to rally to levels near 1995, then stall a bit before breaking clear of the $2085 level and pushing well above the $2150 as a new rally phase begins. At this point, we believe the upside move to break the CYAN resistance channel is key to starting this upside price recovery.

The setup in Silver is very similar and in many ways a bit clearer on the chart. The CYAN downward sloping price channel is very clear. Price is very close to breaking above this channel. We believe the next move in Silver is a rally to levels near $28, then stalling briefly before the next “appreciation” phase begins pushing Silver above $31.50.

Remember, what we are calling the “appreciation phase” is really a much longer term price appreciation cycle in metals that should begin within the next 6 months and may last 2+ years. When we are reviewing Daily charts, as we are in this article, we are talking about an appreciation phase that may last 7 to 15 days – not 2 years. Take a look at the research articles we’ve linked near top of this article to learn about the broader market phases that are setting up.

Still, the end result is that we believe Gold and Silver are ready to start moving much higher at this point – we just need to see those CYAN levels broken first.

Metals have been, and continue to be, incredible opportunities for skilled technical traders. Repeating cycles and patterns allows skilled traders to pick from multiple triggers. If you want to learn how to become a better metals trader, visit www.TheTechnicalTraders.com to learn how we can help you out.

NOTICE : Our free research does not constitute a trade recommendation, or solicitation for our readers to take any action regarding this research. It is provided for educational purposes only. Our research team produces these research articles to share information with our followers/readers in an effort to try to keep you well informed. Visit our web site (www.thetechnicaltraders.com) to learn how to take advantage of our members-only research and trading signals.

For a look at all of today’s economic events, check out our economic calendar.

 

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