Wednesday 6 February 2013

Precious metals ready to break

Gold and Silver look set to break sharply within the next day or two. The price action is approaching the apex of a multi-week wedge/bearish pennant, and a break/snap is very probable. As ever, the key issue is which direction. Best guess is... to the downside.


SLV, 60min



SLV, daily


Summary

*GLD/Gold charts not included today, but they look almost identical.
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I'm guessing SLV breaks to the downside, for a final fifth wave lower -as part of a giant bull flag that stretches back to the highs from last September, before a massive move higher into the late spring to around 38/40.

stop levels - for the serious money, are very clear though.

If however, SLV breaks into the 32s in the next few days, then the downside can be declared over..and the major move higher..will have begun.