I still like gold, and I’m getting bullish on silver

I continue to be bullish on gold, and I have been monitoring silver for a similar bullish setup. Back in January I posted this blog noting that gold had been showing bullish momentum divergences and a very attractive technical setup for a probable upside move. I followed up in February when I posted this video suggesting that gold was setting up for a move. So you cannot say I didn’t give you plenty of heads up on golds upside potential when it was trading at $1800/oz. Since that time, gold rallied to $2100, although it has since then settled in to near $1930.

Gold still looks good

Here is the chart for gold. I’m updating the same chart with the original notations posted on my January blog noted above. Note that gold has broken the right angled triangle noted in that blog, and has maintained positive momentum divergences along with positive moneyflow (top and bottom panes). You can see the recent test of the early 2020 highs. Note that the pullback to $1930 keeps price well over its declining trendline that constructed the right angled triangle. As such, I must maintain that the breakout is still valid. All conditions remain positive for gold until proven otherwise.

Silver

In addition to gold, I am becoming more and more interested in silver as a portfolio position. The chart below is illustrating a classic sideways consolidation with a slightly rounded look, followed by a neckline breakout and a further sideways consolidation. This  looks a lot like a Cup & Handle type formation, which can be bullish. As you know, I don’t get tied up in the “name that formation” game. Call it the  Rumpelstiltskin Banana Peel Formation. It doesn’t matter. The point is, as I note in my Online Technical Analysis Course, that a consolidation breakout that is holding its neckline is a good setup. And that’s what we have here.

I do not think its unreasonable to estimate a return to the old highs in the $40-$50 area if the current consolidation lid of $30 is broken. Note that we have the same setup we saw in gold back in January. That is, a consolidation pattern. Gold was in a right angled triangle, silver is in a rectangular pattern – both are simply consolidations. Like gold back in the New Year, silver is demonstrating bullishly diverging RSI and MACD. All in, silver looks constructive. If $30 breaks, the upside is attractive. If the lower support level near $22 breaks – you have a sell signal. Very straight forward risk/reward setup as far as I am concerned.

Tools for Traders

Here is a list of educational tools and trading ideas that I am currently offering:

YouTube video’s: Much like this blog, but often covering unique topics like my recent one on rare earth metals – watch the video’s here.

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Online Technical Analysis Course: The system I teach is the result of over three decades of professionally trading stocks. This “school of hard-knocks”  has produced a systematic game plan that I know works. And yet – Its geared towards retail investors (that’s YOU!) — not professional traders. Right now the course is offered at $100. I am anticipating the price of this course to change significantly upwards in the coming weeks. So, you snooze you loose. That is, if you put off buying the course for too long. Here is the link.