Thursday last week we suggested that it may be time for those looking to take a position in the precious metals to act. Today those positions would be showing a nice profit for a swing trader and/or a cushion for a dollar cost strategy.
Gold: The 4-hour timeframe is shown below. A close over $1710 this week would be a very bullish signal. Realistically, a close over $1685-95 would be constructive.
Silver: the immediate resistance is $21.10 but bulls have more significant resistance to look forward to higher up. Silver bulls would look to close the metal over $20.30 this week regardless. The yellow highlighted are shows the resistance zone.
2x Leveraged Canadian mining ETF: is mimicking the action in silver, as can be seen below.
The Gold/Silver ratio: Has followed though to the downside since we pointed out the major weakness on the monthly timeframe in mid-September. The ratio is sitting at seemingly critical support, will we see another leg down? Perhaps the ratio needs to consolidate at support here first, or perhaps weekly stochastics embed into the oversold condition.
Thanks, and have a great day.
