"IF" my analysis is correct that silver and gold are completing ending diagonal patterns into key price support, then the metals should have the biggest rally since the 2011 top. My stop on the entire position in miners, gold and silver remains at a weekly close under 13 on silver.
If these are EDs, when the metals reverse to the upside the rally should be a rocket ride to the minimum projection areas of 21-22 on silver and 1340ish on gold. I think targets at 26 and 1400 or higher will probably play out eventually, but I'm already getting ahead of myself until there is a definitive breakout to the upside.
One of the problems with EDs is they can take their time with the actual launch. Sometimes they reverse immediately after the 5th wave is done and sometimes they have a few false starts and retest a time or two before the real move starts. So, the metals could lift off at any time or they could chop around for several months first. We will find out in the fullness of time.
Posted below are a few more charts with additional analysis suggesting an intermediate low may be in the making. This is all just theoretical based on empirical evidence, though I think this setup is a pretty high-probability one given the massive confluence lining up in price projections and trend line support. As noted several several times now, a weekly close under 13 in silver would likely invalidate the analysis.
Kim Rice 12/20/15
No comments:
Post a Comment