Silver snaps to the downside

Both Silver and Gold snapped moderately lower in the morning, yet it was a somewhat turbulent days trading. A morning ramp...but that also failed, and then weakness into the close. The daily cycle is set to turn negative late Friday/early Monday.


SLV'60min

SLV'daily

Summary

Just a brief update..

..it was pleasing to see SLV snap lower at the open, but it sure wasn't easy seeing the ramp take SLV right back to the upper wedge line.

The close was somewhat bearish.

Next soft downside target is SLV 29.75..although we could slip much lower to 28.50 next week.

I remain short SLV, but looking to flip to long within the next 3-7 days..and then hold long into the late spring..with a target of 38/40.

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.

Moderate weekly gains for the metals

The precious metals saw moderate gains across the week. Considering the gains in the main equity indexes, and the continued weakness in the US dollar, Gold and Silver are arguably under-performing. It would still seem a fifth wave lower is due in the coming few weeks, before a major wave higher into the early summer.


GLD, weekly2, rainbow

SLV, weekly2, rainbow

Summary

We can see what are clear bull flags - stretching back from the Sept'2012 highs.

A break over the upper channel will confirm the flag, and I'd expect this to occur no later than March.

First though, I'm still seeking a final fifth wave lower - see SLV chart for a rough count of what I'm expecting.


Targets for late spring/early summer 2013

SLV downside to 29, possible 27s..before a major move higher to 38/40
GLD, downside to 157/154..before a major move higher to 180/185