Things just took a turn for the worst, and there is no turnaround in sight. Unless and until demand enters the picture, price will continue lower until it finds demand sufficient to effect a change. For right now, there is no demand apparent. What else can be said. This is like watching a car teetering on the edge of the cliff, waiting to see if/when it falls. The trend is down, and that is all you need to know!
The above introductory comments are edited excerpts from Part 2 of an article* by Michael Noonan (edgetraderplus.com) entitled Gold And Silver – Elites V Gold: Still No Contest. Here’s Part 1 – Noonan: An Exposé of the Elites & Their Control of the Price of Gold & Silver
Noonan goes on to say in further edited excerpts:
Silver – Monthly Chart
…How much lower could silver go? We give $14.65 as a Last Low Before High [LLBH], an area where price will sometimes return as a retest…so it is a price to watch should silver continue lower.
The crux for silver and gold is in the discussion on the weekly chart. Unless and until demand enters the picture, price will continue lower until it finds demand sufficient to effect a change. For right now, there is no demand apparent. It may develop next week, next month, next year, we do not know, but when demand does show up, it will make its presence known.
Silver – Daily Chart
The daily says just how weak the silver market is. Whenever price goes under the lower support channel line, it is in oversold territory. Look for how long silver has remained oversold, evidencing no ability to rally – none.
Here are a few signs to watch as a check on the character of this market. Resistance can now be expected at failed support, the 18.70 area, seen by the thin horizontal line. If the next reaction rally fails to reach that price, and forms a swing high under 18.70, it will leave behind another area of bearish spacing.
Once again, reading the information in present tense, the market gives the most reliable indicators upon which one can rely.
As with silver, annual gold has not rallied very much in 2014. At the same time, the decline has been small, but in a down trend, supply has been proven. It is demand that must meet the burden of proof for change and demonstrate an ability to sustain rallies.
Gold – Monthly Chart
As shown on the monthly chart below, 1,000 +/- is a logical area of support. Based on the inability of the market to show any kind of support, and knowing Anything Can Happen, that level must be viewed as a possibility, unless or until proven otherwise.
Gold – Weekly Chart
What else can be said. This is like watching a car teetering on the edge of the cliff, waiting to see if/when it falls. The trend is down, and that is all you need to know!
Gold – Daily Chart
…It seems all the news you read has not affected the down trend – at all – when expectations would dictate otherwise. It is the news no one sees that continues to weigh on the PMs, so a diligence in reading the charts remains the best handle, to date.
- Do not be long any futures is the clear message.
- Hold all physical purchases as price is nearer the lows than not, and it is strong hands that buy low, weak hands sell.
- Pick the kind of company you wish to follow.
Irrespective of where price may find support, the developing market activity shows no sign of bottoming, and the trend will not change until a bottom forms. Time-wise, this does not argue for a near-term turn from down to at least sideways, before going higher.
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.
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