Study a chart of SLV, the ETF for silver, and note that this current rise really needs to clear the high of early July, at $19.45, or it is in danger of creating a head & shoulders top. See that? It closed at $19.05 today, and would need to run at least 2 more % to breakthrough the left shoulder.
Gold is in need of making a similar kind of move, where it eclipses its mid-August high, and then its early-August high. Looking at IAU, an ETF for the metal, it’s mid-August high is $13.05, just 4 cents away, and its August 2 high is $13.18, about another % higher than that. Then, we can begin to think about the July 2 top, at $13.25. All of these will prove to be points of price resistance, on its way up.
It’s a bull market, and as each of these should be breached, new money will come in to push on it even harder and higher.
Any pullbacks should be viewed as further opportunity to be a buyer. I, for one, would like to see some selling come it, to push prices back, as I would like to add some more.
If, on the other hand, if we don’t see anything like that, I’m willing to do, as I did on Friday, April 8, and be a buyer upon a high volume induced breakout!
Whatever happens, and whatever I do, will be reported right here.
Just letting you know, metals prices are backing up some this morning, as of 8:00 am EST. This could well set us up for another opportunity to be a buyer! Let’s see…
Here’s to your accumulation of real wealth!
Harold F Crowell