The stage is set and the music is blaring the tune “Immediate price surge”

Haven’t seen the charts this bullish in the short term for a while, and haven’t felt this bullish in a while either. The bears do look like they could be in for a shocker as things are shaping up nicely. It is hard to argue against a price surge, but I suppose anything is possible.

The Gold Price is ready for another shot at $1300 based on the chart painting. The yellow metal has been holding in there:

 

 

For the better part of the year, gold has been stuck in that sideways channel of, call it, $1220 and $1300. Well, there is just not much room left to float sideways on the daily chart. We are right up against the resistance line. What looks nice in the short term, is that when gold punched through $1300 last Friday, it drifted sideways to the support line of the upward sloping channel. That chart formation is going to have to break down as gold breaks out, and that break out is above the massive resistance at $1300.

Will it break out today? Looks like it could. Recall that just yesterday, 12,500 contracts were dumped sold on the COMEX in just 3 minutes. After smashing the price to $1287, gold is again poised to make a run at $1300 starting from $1295. One thing for sure by the chart, however, is that gold doesn’t have much longer than this week before some type of move in price happens, and that type of move could be a head-turner.

The Silver Price is equally as bullish. Silver has put in a very large bull flag on the daily chart. Just like with gold, there is not much room left to run to the side on he chart. Silver will either break out, or break down, and we’re just not sure how much more breaking down it can stand without breaking the bank’s physical limits on actual metal:

 

 

Silver is not overbought, and all the technicals are in our favor. We have seen the Tuesday smash yet again yesterday, but silver held up. It seems once again, as it did in early 2016, that the harder the cartel tries to smash, the less they are able to suppress price. The floor keeps being raised, and who knows how tall the skyscraper will be built. Sooner than that, however, is that silver, once again, is about to start moving, and technical indicators point up.

Further in the bullish factor of the metals is the continued strong performance of copper and palladium. This is where it gets tricky:

 

 

All the analysts are saying, well, the “base metals are overbought at this point”, “it was all based on the infrastructure build”, and “this is rampant speculation in China”. Seems odd how those same nay-sayers argue that “cryptocurrency is not overbought”, “the stock market is not overvalued based on the [non-existent] tax breaks”, and “what happens in China, stays in China”.

There is no denying the bullishness in the chart, however. The base metal and precious metal have converged again, and the move is far from parabolic as it is shaping up when watching the formation of the daily. All year long, we saw the metals form a nice rounded bottom, and they have been grinding away at moving to higher-highs. At this point, base metal and precious metal shorts may want to reconsider those positions.

Crude oil also looks like it is in store for some positive price action. However, the chart for crude doesn’t so much highlight black gold as it does speak to the immediacy of the spike in price coming to gold and silver. First, the look of crude itself:

 

 

On the daily, we can see that crude has been bounding off support that is somewhere between $46 and $47. This is signaling that we can be ready for a move higher, although there are no immediate intersections on the chart screaming “rip-your-face-off”. What is more likely as the daily is shaping up, is that the blue 50-day moving average is starting to turn up.

There is one formation that technical analysts like to throw out from time to time, and that is a head and shoulders pattern. In crude, one could argue a reverse head and shoulders pattern with the head right at the low. Crude right now is finishing the second shoulder, and since it is an inverse, this would be bullish, though seeing how long it has been forming on the charts, since late March, it could take equally longer to make the move. The bottom (no pun intended) has been shaping up on the chart, and crude is looking bullish moving forward, but more slowly. Once it gets back up to $50, however, it has to deal with that nasty resistance line it hasn’t been able to break for most of the year.

Circling back to the point about the metals and crude. Crude is looking bullish on the chart, but when compared to the metals, gold and silver are looking very bullish, and in the immediate, near term too. Crude is slowly doing it’s thing, but the metals are pent up and ready to bring fire and fury on the COMEX. We’ll see how much firepower the cartel has to respond, and we will see sooner than later. Not so much with crude.

The stock market looks ugly. There is always the possibility of a massive price spike and rally, but the Dow and S&P 500 really look exhausted here. There are wild swings occurring almost daily, and they are rounding a top our for a move lower:

 

 

No, that’s not a downward channel, that’s two ugly downtrend lines amidst the erratic swings of the last three weeks. And wouldn’t you know? Tomorrow is 8/24. I wouldn’t want to be buying up a bunch of stocks right now. No sir. I’ll just grab a couple more eagles and pop some popcorn.

On the charts, this leaves us with the US dollar. The last fiat standing. Though it looks like it is slouching rather than standing, and get ready to get out of the way, because it could faint and fall too:

 

 

 

There is nothing good looking about the dollar, even though the MSM and most analysts have been on the “strong dollar” meme all year. They will soon know what it ultimately feels like, and they will feel it for a very long time, as in years, because we have been feeling it since 2011 in silver and 2013 in gold. “Strong silver’ and “strong gold” were the memes as they reached $1050 and $13.50 respectively. The dollar has been strong, yes, but that was since June 2014. Now, that dog don’t hunt. Anybody seeing a bottom here might want to rethink their plan. 

The one thing working against us today is the calendar of economic news for the day:

 

 

There are market moving data releases coming out all morning, and if that doesn’t cause a little queasiness to all the gold and silver bulls, the Fed Kaplan speech in the afternoon should. Did the cartel use up all their ammo yesterday? Those three minutes in gold look like they certainly went through a lot. And if there is some political turmoil in Washington, or some event elsewhere in the world, they are going to need whatever they have left for that.

So here we wait, looking good, but again, we are breaking out or breaking down. We have broke down so many times this year that we almost expect it. The chart for both the gold price and silver price, are screaming “right now” and “this week”, and if that break out is to the upside, people are going to get caught off guard, and their are either going to be in a ton of pain, or they are going to be running as fast as they can trying to catch up.

    • @Faranginkorat…………….”another rinse and repeat cycle”

      We’ve been stuck paddling the COMEX backwaters for years. Just around the bend is just another view of where we were days ago. Yessir, we’re on an Oxbow, all you have to do is peek through those cattails and you’ll see we ain’t moved very far at all.

      So keep paddlin’………. hand me a couple beers and tell me that moonshot story again.

       

       

    • @Precious Mental

      Don’t get me wrong, I believe there are good times coming, but we will see lower prices first.

      Therefore, my wife and I have a two-pronged strategy.

      She is perpetually long with gold bars.

      We only sell when we desperately need cash, and buy more when we can.

      Then, for leverage and profit, she trades unhedged naked futures on the TFEX.

      We used to swing both ways, long and short, and did well at it, but I no longer dare to go short.

      I think we are too close to a big move upwards.

      So now, we buy when I believe it is nearing a bottom, buying before the bottom, I will note, and hoping each one will be the “big one”.

      If CFTC reports show that it isn’t, we sell, make some money and wait for the next bottom.

      Unfortunately, we have been right on gold prices the last 2 cycles but lost a little anyways on each as the declining $ caused the gold price in THB to decline while it had increased in $US.

      I am in the States now (she is in Thailand), and want some exposure to silver, which is not available in Thailand.

      Selling a house in Florida, then I will get more serious about it.

       

       

    • @Faranginkorat…………I’ll echo your thoughts on the temporary downside move. Geo-politics just slid the time frame over a tad, hence the last ten days of sideways Bart Simpson flat top trading.

      I stack, therefore I am.

       

    • You made me laugh, I thought that I was the only one who never reads the articles on Silver about to surge. I just go to the comments.

       

  1. Bitcoin to gold ratio = 3.25 to 1

    Bitcoin to silver ratio = 247 to 1

    Not bad for an asset class that 99% of the gurus told everyone to stay away from. Thanks for nothing guys! We could not have done it without you.

    I know the ardent stacker will reply to this message saying; “I want no part of that crypto bubble! I’ll keep buying real money until the cows come home.” I thought the same way for years but it has become clear to me that cryptos are more than just a bubble. I agree that a lot of the BS coins being introduced through ICO’s are pure speculative garbage. But just like during the .COM bubble there are real winners mixed in with the ones just going along for the ride. We will see what is left standing at the end of the day.

    I think it’s a fairly safe bet that Bitcoin, Ethereum and Litecoin will be three of the winners. I mean heck, if you invested into any of these within the past few years you have done quite well. Meanwhile gold and silver remain violently suppressed under the thumb of the banking cartel.

    It’s time to give Jeff Berwick his due. His readers have made a mint following his advice since 2011. I honestly thought the man was a clown after watching some of his videos but man did he prove to be prophetic. Credit where it’s due; Berwick is one of the only gurus that I know of that was touting Bitcoin from day one. Congratulations to anyone that took his advice and got into the crypto game. Sadly I did not.

  2. More rinse wash repeat psycho babble.  A big shoutout to JEFF BERWICK.  Like Bitcoin or not he made an incredible call and made some folk very happy.  All the cheerleaders like Egon, Rick, Rickards, Polony, Sinclair and the like have contributed absolutely zero to the equation in the last six years.

  3. Kick indeed…. Physical PM holders square in the mouth! This tedious BS slightly under $1300 just doesn’t feel right to me…

     

    On another note, anyone notice how poor the PM miner shares have been doing recently even with gold around the $1250 area and oil only $47/barrel. Absolutely pitiful, most of these management teams should be tared and feathered and then hung from their nut sacks…

    • Yep. The mining shares have been performing terribly especially the silver miners. They may get a dead cat bounce here and there but then it’s back to the flat to lower trajectory.

      The mining CEO’s have nobody to blame but themselves. 99% of them haven’t stood up and said a peep about the criminal manipulation suppressing the very assets that their companies depend upon. So long as they are cashing their fat salary checks they will remain quiet. Let’s not forget that they are dependent upon some of the very same banks for financing that are complicit in suppressing PM’s. Talk about sleeping with  the enemy.

  4. The PMS have been trading in an extremely narrow range. This crap doesn’t have the capacity to overcome resistance of any kind. No real market is so well calibrated that it can distinguish price discovery to the penny. That’s all pure manipulation.

    This is what’s going to happen. Based on past experience when PMs pull this bullshit, the prices will collapse through the floor.. x

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