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If you want to make rabbit stew, first, you have to catch the rabbit so hopefully, 
first, we’ll see some concrete signs that a bottom is in before the regurgitation of “Gold is going to $10,000!” starts showing up in a host of new articles pandering for attention. The best way is to decide for yourself…so let us go to the most reliable source, the market, and see what the prices of gold and silver have to say about what everyone else has been saying about them. People have been known to exaggerate, even lie in their “opinions,” but the market never does either.
So says Michael Noonan (http://edgetraderplus.com) in edited excerpts from his original article* entitled Gold And Silver – It Is Silver Sending A Message.
[The following article is presented by Lorimer Wilson, editor of www.munKNEE.com and may have been edited ([ ]), abridged (…) and/or reformatted (some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. This paragraph must be included in any article re-posting to avoid copyright infringement.]
Noonan goes on to say in further edited excerpts:
The issue we have with gold is a lack of an immediately identifiable support area. There is
support, a little lower, and for that reason, we do not see a strong message coming from
gold, just yet. On the other hand, [never take anything for granted in the markets], the
fact that price is holding above obvious support is an indication of underlying strength. IF
that is the case, we still need to see some concrete sign of stopping activity before price can
turn around.
Gold – Monthly Chart
In the chart below we see some potential support resting under the current price – way under – at $1040 to $1100.
Gold – Weekly Chart
Just like the monthly chart, the weekly chart trend is down with no ending action in sight. Gold can, and likely will, go lower.
Gold – Daily Chart
A wide-range bar usually contains future price activity and is shown in the chart below…It is a great example of reality…Last Friday’s bar declined with ease and is much wider than the rally bars preceding it. The daily chart shows no stopping action.
Silver – Monthly Chart
Silver is already into an identifiable area of support. We should be looking closely for some form of stopping action, telling us price may stop going down.
Last week’s bar stands out as a red flag for its price and volume. The same bar in gold was too similar to one that had already failed, so it could not be viewed in a more important vein as this one.
Silver – Daily Chart
We give a more detailed analysis on smart money and high volume activity on the daily chart, below. Suffice it to say that what is true on the daily is also true for the weekly. It is just more visible and easier to explain with more bar examples.
[Editor’s Note: The author’s views and conclusions in the above article are unaltered and no personal comments have been included to maintain the integrity of the original post. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.]
*http://edgetraderplus.com/market-commentaries/gold-and-silver-it-is-silver-sending-a-message
Related Articles:
1. Gold Going Down to $1,160 – $1,200 & Silver to $15 – $18. Here’s Why
So predicted Juan Eduardo Morales Veas (www.moneygreedandfear.com). Gold did get down to $1,179.40 on June 28th in intraday trading, and silver to $18.17, but time will tell whether his forecast of $3,950 gold and $117 silver by the end of 2013 comes to pass.
2. Gold to Plummet to $1,200 – $1,250 & Ultimately Drop to $1,000 – $1,100
So claims Greg Guenthner (http://dailyreckoning.com). He stated that once gold breached $1,350 it would plummet to $1,200 – $1.250. So far, so good, but will his $1,000 – $1,100 price for gold come true?
3. Nouriel Roubini: Gold to Be Gutted! Here’s Why
Roubini expects gold will fall below $1,000/oz, taking prices down to approximately 30% from current levels; a point not seen since 2007. Here’s why. Read More »
4. Gold Bugs: Look Out Below! Gold Could Drop to $1,000
Scott Grannis (http://scottgrannis.blogspot.ca) thinks gold could fall to $1000, or even less, as it realigns with other commodity prices.
Other Noonan Articles:
1. Noonan: Charts Suggest NO Ending Price Action In Either Gold or Silver – Take a Look!
Not one Precious Metals guru has gotten anything right in the last 18 months. All have been calling for considerably higher prices. Over the past several months none called for sub-$1,300 gold and sub-$20 silver. Crystal balls do not work and never have. When it comes to markets, anything can happen [but the charts convey that] there is no apparent ending action suggesting a selling climax or even a cause for a reaction rally. Take a look. Read More »
2. Charts Provide Certainty – Not Opinion: Here’s What They Say About Gold & Silver
Charts provide certainty, for they are absolute and the final word at the end of day, week, month, etc. There can be no dispute over a bar’s high, low and close, plus the volume, for whatever the time period under consideration. There is a high degree of logic within them and, while there can be differences of opinion over their interpretation, establishing a fixed set of parameters can mitigate most any potential dispute. So just what are the charts saying about the current trend in gold and silver? Let’s take a look. Read More »
3. Gold & Silver Rules of Engagement: IF This Happens, THEN Do That – Here’s Why, Here’s How
Never go against the market. It does not matter what your beliefs are…It does not matter what the fundamentals are either. [What matters] is the TREND! Once you know the trend is up you need a game plan on how to participate from the buy side and when the trend is down, a plan ion how to participate from the short side. If there is no trend, then the odds are not favorable for either game plan.[So exactly what are the charts saying about the trend in gold and silver these days? Read on!] Read More »
4. Gold & Silver: Don’t Wait for the Bottom – “Average Down”. Here’s Why
You cannot control what others do, especially those in power. You can control what you do. Just keep buying, regardless of price, because if/when the price of gold and silver were to go lower, you may not be able to buy. If/when the price of gold and silver were to go higher, it may be at such an accelerated rate that any price in the past few years seem cheap. Words: 550 Read More »
The next chapter [in gold and silver] has yet to be written. One thing is likely to be certain, it will get uglier. The public will not be prepared for what could take a few more years to develop, and the potential for yet much lower prices for both gold and silver. Read More »
6. What the Charts Say About the Future Price Action of Gold & Silver
The monthly silver chart does not reflect what could be viewed as ending action for the decline. If/as price rallies, it may be more of a futures selling opportunity than a sign of recovery. As the structure stands, odds favor lower price attempts. Read More »
7. The Best Article On “What Happened to the Price of Gold & Why?”
Everyone personally holding physical gold and silver, as we have been recommending, has no margin call to meet and no reason to sell. This is a temporary situation, and it will pass. Now is not the time to panic, as that is the intent of the central planners/bankers in forcing gold and silver through strong support levels. Stay the course. To the extent you can, continue buying the physical metal. Read More »
9. Gold & Silver: Go “Get” While the Getting is Good! Here’s Why
There will come a time, and based on current charts no one knows when, that prices for gold and silver will become prohibitive and/or governments will do what they can to inhibit (steal) ownership, maybe even making it criminal to own or use in transactions. [That being the case we advocate that you go “get”] physical gold and silver [while the getting is good], consistently and at any price. The point here is not to “make money,” but to preserve and/or create wealth. [Let me explain.] Read More »
It’s always a bit of a conundrum when you look at any short term charts, or conjure the existence of a real market.
A partly broken market or totally broken market is the same thing.
What you have here and everywhere is a “market price” discovered in large part by a fundamentally disconnected paper pricing mechanism traded by massive algorithms, yet almost always dominated by commercial trading entities who really shouldn’t be there at all, yet hold (or held) concentrated selling positions.
While true, no matter how the tape is painted (illegal or not), by these coordinated uneconomic carpet bombings followed by rising margins (because volatility!). there will always be those whose business is to re-position in the aftermath, profiteering on the momentum. These are the professionals of course.
The point is that while these charts are interesting and the whole of technical analysis and short-term trading is thrilling and fascinating, they are fundamentally derived by a system that is fragile in essence of the word. This is why 10000 calls exist and why there are those who listen and read them.
In the end, even if gold were to go to $10000 — what would trade it for? Your profits would merely consist of retained purchasing power.