On July 22 we wrote that “In this trader’s opinion, the weight of evidence is strong that metals either have, or are very close to beginning a sustained counter move to the relentless downside action” and posted the two following charts to show potential short term targets.
This morning those targets have been hit: Swing traders may already have locked in profit wehereas positional traders should be aware that the first pullback of the current move off the low could shake their belief that higher prices are yet to come.
On Wednesday, we showed the Gold to silver ratio breaking about above a key Fibonacci level and suggested that the catalysts we in place for a reversal; that has also transpired. The updated chart below shows the extent of the reversal, and suggests higher prices lie ahead for the metals in the medium term.
Thanks and have a great week,
