Noonan: “Charts Give No Hint Of A Change In The Ongoing Downside Pressure On Gold & Silver” (+2K Views)

There does not appear to be any hint of a change in the ongoing downside pressure for gold and silver.

The comments above & below are edited ([ ]) and abridged (…) excerpts from an article by Michael Noonan (EdgeTraderPlus.com)

…Confirmation of a change in trend will only come after a higher high above 1300 from 2016, as seen in this weekly chart below.  Since the month and a half decline at the end of 2016, it has been seven months of rally effort that has been unable to retrace the entire decline.  This is a sign of a weak market, and supports the weakness found in the Qtrly and monthly charts.

Gold Chart: July 2014 – July 2017

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Gold Chart: Daily

We made chart comments on the daily, but the overriding factor is the existence of an ongoing TR [trading range], and the level of knowledge is weakest when price is in a TR because rallies fail and declines hold within the range.  Nothing much in the way of encouragement to see here.

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Silver Chart: July 2004 – July 2017

Silver remains the weaker PM.  The gold:silver ratio, having reached 66:1, is now back to around 75:1, indicating a poorer performance in silver relative to gold.  From the 2011 high to the 2015 low, silver continues to languish nearer the lows, unable to mount a stronger retracement off those lows.  As in gold, there is no evidence of any positive change for this market.

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The only interesting aspect of silver is the volume behavior.  In the past few months, downside volume has been way above average, yet there has been no giving way of the December 2016 low.  In a truly weak market, the December low should not have held. Our conclusion is that we are seeing the possibility of strong money [central banks] covering shorts, which is a form of buying.  The negative volume not giving way is a possible reading of what smart money is doing while trying to hide their plan(s). Price and volume are facts.  They do not lie, but they can be misconstrued, which may be the case, as described, and a subtle bullish point of view.

Silver Chart: Weekly July 2014 – 2017

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If we are to see change, it will first show up on the smaller time frame, such as the daily chart.  Given the volume read from the weekly, it would give credence to the possibility of a bear trap (still within a TR) low, and a possibly successful retest, last week.  What happens now is that the market must hold the June low and continue to improve in any rally attempts.  The market still needs more time.

Silver Chart: Daily Jan./17 – July/17

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Summary Thoughts

We do not support trading from the short side of the paper market, so as not to support the downside manipulation efforts.  We still fully support buying physical gold and silver, even if the buying is still too early.  At some point, reality will creep in, and these markets will go substantially higher. Unfortunately, it could take substantially more time.

“Better a year (or more, now) early than a day late” may be a rationalization for the ongoing accumulation of the physical metals, but holding gold and silver still yields the benefit of no third-party counter risk, highly relevant in today’s banker confiscation appetite environment, and it protects against the current and never-ending erosion of inflation through increased costs of almost everything, except gold and silver.

The globalists are accumulating as much gold and silver as they can, without saying so. They want everyone to get tired of no meaningful appreciation in PMs, and even keeping them in a declining posture.  Do not fall for their lies, lies, and more lies.

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