Silver going to follow Golds breakout?

Posted by Chris Kimble on 07/18/2011 at 6:42 am; This entry is filed under gold, silver.

The "Power of the Pattern" suggested to harvest Gold position on 5/2 (see post here)  Due to resistance Gold declined almost 8% in few weeks.

On 7/13 the patterns reflected that Gold ETF GLD was breaking from a sideways channel, which reflected a NEW BUY SIGNAL FOR GOLD due to the breakout (see post here).  Gold has continued to push higher after the breakout. 

While Gold declined 8%, Silver declined over 30%.....Silver chopped sideways between the low and its 38% Fib level for several months yet a change from this sideways patterns looks to be in the making....

CLICK ON CHART TO ENLARGE

With Gold breaking to new all-time highs...a break above Silvers 38% retracement level and sideways channel would be a VERY positive event for SLV.

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3 Comments

  1. stemphos July 18th, 2011 at 1:51 pm

    Chris,

    I try to use SLV to track silver. What is the 38% retracement level for SLV?

    Are the chart above and SLV closely correlated?

    Thanks,
    Aaron

  2. Chris Kimble July 18th, 2011 at 2:26 pm

    Aaron….Ironic the 38% retracement level is right at $38 on SLV. SLV is designed to track the chart I shared, which is silver futures.

  3. Jeff Hook July 18th, 2011 at 8:23 pm

    SLV is looking ROCK SOLID and EXTREMELY bullish to me now. I’ve just created a number of charts, using various indicators, in different time ranges. I almost fell off my chair! WOW! I could be “way wrong,” but, gee willikers…