By Cory
Gold & Silver- Desperately need this to hold!
The chart below is courtesy of Chris Kimble over at Kimble Charting Solutions. I am not a short term trader so I try to stay away from the short term charts. However when presented with a 30+ year chart I take note. Chris is simply showing us there is a strong support line in the silver/gold ratio that we are approaching. The important aspect to note is that an increasing chart is indicative of a bull market. No telling on where we go but it is important for this ratio to bounce soon.
Click here to visit Chris’s site and read more of his technical analysis.
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Below looks at the Silver/Gold ratio over the past 30-years. Metals bulls (both Gold & Silver) want to see the ratio moving higher, to send a quality bullish message to both.
The ratio has spent the majority of the past 30-years inside of rising channel (1). When the ratio hit the top of the long-term rising channel back in 2011, the ratio put in a large bearish reversal pattern at (A). This is where both Gold & Silver both started turning weak.
CLICK ON CHART TO ENLARGE
Over the past 5-years, the ratio has created a series of lower highs and lower lows inside of falling channel (2), which is not long-term bullish for the metals. The ratio hit rising support at the start of 2016 and short-term counter-trend rally took place, which took it to the top of its falling channel last summer.
The lows over the past 13-years and rising support (1) come into play at (3), as a dual support test.
Gold & Silver bulls BIG TIME want to see support hold at (3)!!! If support would fail to hold at (3), it would send a long-term concerning message to Gold & Silver bulls. What happens at (3) should send a very important long-term message to the Gold and Silver markets.
Source:: The Korelin Economics Report
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