Silver Tongue Chart

Recently I was reviewing some charts of markets that I don't actively trade and I came across the chart of Silver.  
By definition,  "Silver Tongued" is having or exhibiting the power of fluent and persuasive speech; eloquent.

The monthly, weekly and daily chart levels of Silver are eloquent indeed. 

Watch my video, entitled,  "The Silver Tongue", a monthly, weekly and daily chart level discussion of Silver futures; dominant elliott wave patterns and SLV (silver etf). 

See how I'm approaching this market.

Best of Trading 

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Silver and Gold: A Possible Turn?

SILVER:

 

Silver appears to have completed a flat correction that met resistance at 40.85- .95. A break of the w.iv circle low of 38.19 confirms that w.(2) had ended, setting the stage for a third wave decline.

Gold:

The call on Gold is a bit more complex than silver. At the weekly chart level, the price of Gold has reached a high of 1629 where w.(4) divides w.{(1)-(5)} into the Golden section.

 

Looking at the daily chart, the wave pattern is mature. Little, if any, upside potential remains. I would allow room for limited upside here with the understanding that the risk now is to the upside. Prints below 1478.5 would mean that a meaningful decline should follow.

You can learn more about the long term direction of Silver, Gold, global indices, commodities and currencies,  in my upcoming Mid Year Forecast.

Best of Trading 

Silver Gold Ratio : Is Risk on or Off?

Commodities are not fairing any better today. Corn, Wheat, Gold, Oil, Silver and Copper are all adding to their losses.

I thought that I would add this chart of the Silver/Gold Ratio to show a measurement of  the Risk. Currently traders are risk adverse as the ratio came crashing down from what was a parabolic run from 2009 to April 2011. As you can see, or in this case barely see, a new low has been made starting this week therefore the unwindeing continues even though the USD is weak. 

I've added an oval around the bar for visual assistance. Note that structural support at 114 was tested and has now failed on the second test with today's gap to the downside. Look for this are to provide resistance against any attempt to rally. The ratio should work it's way lower between 97-108.

Watch those levels for any sign that sentiment has changed back to "Risk On"

Best of Trading