Below is a look at the long term trend for gold and silver from our friend Chris Kimble. While the recent moves in the metals have been encouraging he brings up that the metals need to move a little higher to break the long term trend (since the highs in 2011). Chris is not saying he thinks the metals are going back to the 2015 lows. Rather he is pointing out that the recent moves have been disappointing.
I am still encouraged with the recent movements in gold and silver but the fact is this recovery has been fairly slow. That can lead to longer more sustainable rallies but can also be frustrating at times. Such as now with gold moving back below $1,300. The drop from 2011 to 2016 was steep but look at the beginning of the chart from 2019 where gold and silver went pretty much straight up. I believe we are staring a new leg up but this time it will take longer and int he long run be much healthier.
Click here to visit Chris’s site for more technical commentary.
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Gold & Silver long-term trends have been lower since highs back in 2011. Counter trend rallies have continued to frustrate metals bulls as they continue to fizzle out. Are current counter trend rallies in Gold & Silver about to fizzle out again?
Below looks at Gold and Silver on a monthly basis over the past decade-
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Gold and Silver this month tested resistance lines that were based on old highs/lows at (1). As both were testing the underside of this resistance, both have created large bearish reversal patterns (bearish wicks) at each (1).
Metals bulls do not want to see this type of pattern at resistance, while in long-term downtrends. This could also be concerning news for metals bulls, as traders have established positions where historically Gold and Silver were closer to highs than lows.
The Power of the Pattern has been sharing this chart for the past few months with Premium and Metals members, preparing them for this key level. If patterns in the metals complex is of interest to you, we would be honored if you were a member.