30-Year Fibonacci level at hand for Silver
Courtesy of Chris Kimble
I have received several requests for the “Big Picture” on Silver. Here it is…..
Gold finds itself at all time highs…Silver at the 38% retracement level. If Silver can break good ole Fibonacci, the next line (2) is a BIG PERCENTAGE above line (1)!
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Early Today, Chris posted:
Gold Record/Silver breaking out… Play it how?
In the “Hi Yo Silver” chart below (see post) Silver had created a series of ascending triangles, which lead to higher prices around 65% of the time. Silver is up 13% since this post, in just 30 days! How much is gold up during the same time frame? Just a little over 3%…. All metals don’t perform the same!!!
Silver gained 10% more than Gold in the past 30 days. It was this potential per why I have been suggesting to pick up Silver!
Click on chart to enlarge
Below is an update to that chart, with a snap shot of Gold. Silver is breaking from the ascending triangle and is testing resistance at line (2).
Long-term breakouts can lead to much higher prices in any product, same should apply to Gold and Silver! How should one play it? Nothing wrong with owning the metal itself, yet what about Gold/Silver stocks?
Below is a “ratio chart” created by dividing the Price of gold by the XAU Index (gold and silver stocks), looking to see which one is performing better.
The ratio chart is breaking a three year support line which is suggesting gold stocks (see this post on gold stocks, GDX & GDXJ) are going to do better than Gold for a while.
Game Plan…Own GDX and GDXJ WITH STOPS, due to the rising wedge and resistance at (1) and (2) in the middle chart! Gold and Silver are looking great….yet clear breakouts from these patterns, in my opinion, are still not in place for either metal yet!!!
