Submitted by Morris Hubbartt:

The pullback in silver this week brought the important RSI indicator back down to the key 30 area.  Silver is one of my favorite long term growth investments.
On the long term silver chart, RSI for silver has declined to 30 area, seven times.  Six big rallies have occurred after each of those events.  Will this time be “lucky number 7”?  I think so, and my target for this rally is $44.

 

2013 Silver Eagles As Low as $2.59 Over Spot at SDBullion!

 

US Dollar Technical Disintegration Chart

 

  • The dollar continues to drift sideways to lower, within the enormous triangle formation.  I’ve highlighted that in red color.

 

  •  RSI was unable to hold above the key 50 level.  It’s breaking down now.

 

  •  MACD shows a negative divergence.  The dollar made a minor high at 84.10, but MACD failed to do so, and it’s rolling over.

 

  •  Slow “Stokes” (Stochastics) also failed at the 50 line, and is heading lower.

 

  •  When buying gold based on strength in the dollar, it’s very important to avoid the use of heavy leverage.  My suggestion is to use dollar strength and gold weakness to purchase physical gold.

 

Euro Breakout Chart

 

  •  I am highlighting a nice inverse head and shoulders formation on this chart.  The euro has “officially” broken out to the upside.  The H&S pattern is projecting an additional gain of 14 points, which is about 10%.

 

  •  The euro has now gotten overbought and the price could drop back to the neckline area, before making a move to my upside target at 146.

 

  •  In the big picture, a stronger euro is good for gold.

 

Gold Sentiment Chart

 

  • This chart shows gold sentiment, courtesy of www.sentimentrader.com and Hulbert’s gold survey. Gold timers are only about 10% long gold.

 

  •  There is a real possibility that the next report will show they are actually net short the gold market.  The mood amongst gold investors now is downright pessimistic.
    •  I think the pendulum has swung far enough, and gold is now ready for a major advance.

     

    Gold Stokes Versus RSI Chart

 

  •  My technical work suggested an upside breakout would occur in the

October to December time frame.  I was clearly wrong.

 

  •  The bullish move didn’t happen, largely because of tax-loss selling and the fiscal cliff.  Investors still need to hold their positions.  There has been a set-back in technical timing, but not in the main fundamentals of this gold bull market.

 

  •  To feel more comfortable in the gold market, use both fundamental  and technical analysis.

 

  • Technically, gold is on very solid footing. The market is oversold now.  Hold your positions.  In May, both the “Stokes” and RSI oscillators became heavily oversold, and gold rallied from about $1550 to $1800.

 

  • In November, I thought gold could stage another big rally, even though the Stokes were sitting near the 50 level on this chart.  A small rally occurred, but now both the Stokes and RSI are set up more like they were in May.  I’m predicting a very big rally will occur in January, much like the one that began in the spring.

 

GDX Positive Divergence Chart

 

  • During this tax loss selling season, volume-based support has been tested, but it has not broken.

 

  • Note the positive divergences that are in play on both the RSI and CMF indicators.

 

  • The accumulation/distribution indicator has a strong record of calling turns, and it is suggesting GDX is about to turn higher.

 

GDXJ Doji Confirms Money Flows Chart

 

  • My money flow indicators are demonstrating that accumulation is likely occurring in the junior gold stocks sector.

 

  • The Doji candle that occurred outside the lower Bollinger band yesterday, is a very bullish event.  It is technical confirmation of the money flows.

 

  • Note the volume-based support in this price area.  I’ve highlighted it with green boxes on the chart.

 

  • Junior gold stocks are ending the year on a disappointing note, but the technical set-up suggests a big rally will occur early in the New Year.

 

Silver Lucky Number Seven Chart

  •  On this chart, RSI for silver has declined to 30 area, seven times.  Six big rallies have occurred after each of those events.  Will this time be “lucky number 7”?  I think so, and my target for this rally is $44.

  •  The pullback in silver this week brought the important RSI indicator back down to the key 30 area.  Silver is one of my favorite long term growth investments.

 

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    • The bullish move didn’t happen because it didn’t happen….and because Morris Hubbartt is a total ass clown. The lines on his charts only point up while the time horizon is always imminent. There is always references of candlesticks in TA. Morris, take the candle stick out of your ass and stop wasting your time.

      Doc, it is evident that no one wants this filth on the site. Once the majority of a website’s content becomes irrelevant, people stop revisiting it. (HINT, HINT)

    • O! Great, Your Not Coming Back? !!!!!!!!!!!! Another Paper Pusher Hits The Dust. By the way Doc’s Site is one of the most visited sites For Physical Silver Stackers Out There.
       

  1. The bullish move didn’t happen, largely because of tax-loss selling and the fiscal cliff.  Investors still need to hold their positions.  There has been a set-back in technical timing, but not in the main fundamentals of this gold bull market.
     
    Bloody Hell I don’t know why I read that crap above, another Can it be our lucky Number, Guessing Games Again and Charts in a Manipulated Market. Just Keep Stacking if you have the Fiat before the SHTF. I’m A Physical Stacker in it for Survival not an Investor in it for Fiat.

    • Marchas wrote, Bloody Hell I don’t know why I read that crap above, another Can it be our lucky Number, Guessing Games Again and Charts in a Manipulated Market. Just Keep Stacking if you have the Fiat before the SHTF. I’m A Physical Stacker in it for Survival not an Investor in it for Fiat.

      Well put.

      Keep it simple and it will work out in the wash.

      Happy Holidays All!

      DF      

  2. We are witnessing a take down in two important ways, the one we all discuss daily but also another we seldom discuss, that is the psychological manipulation of the public’s mind pertaining to the metals. It is a double fisted, coordinated attack by the globalist banksters to keep us average folk from collecting it. In the back of our minds we remember the bad publicity and forecasts and then when the paper smack down occurs, the emotional investors are scared away from the metals market. The smarter ones however know that this is what they want us to do…..CAVE! In moments like this the smart ones keep what phyzz they have and/or add to the stack. We know silver will have it’s run at some point very soon and anything worth having is worth waiting for.

    • @SilverSlicker … @Marchas45 … Nice pictures. There’s a real sense of atmosphere with this old silver. I always like to take it out for a look now and again, and it’s the old coins that get me most fascinated because they have been owned by so many over such alot of years, during times when money WAS money, but they didn’t know it then, like we do now! It’s like a window into the past. I love they way it goes a bit black, and the sound, and the weight .. fabulous!
       
      Maybe I need to get a life, lol

    • @Marchas45
      Nice score Charlie, looks like a couple of G’s plus worth of precious to me! My photo was lifted off the web as I don’t have a lens big enough to photograph my holdings…..hehehehehehe!
      But seriously…………..

      @Chief
      I love the old coins too, I am particularly partial to the Franklin and the Walking Liberty half dollars as well as Mercury dimes, they are so nice to look at. They don’t have the same style in today’s coinage, like cars…..very few modern specimens have any real style.
       
      One last thought, those who caved into this shakedown will be very sorry when silver hits the high road very soon.

      “Hi-ho Silver….away!”.

    • “They don’t have the same style in today’s coinage, like cars…..very few modern specimens have any real style.”

      Right on, SS.  All of the new cars look like they were squeezed out of the same tube.  Hell, even the new Jag XJR looks like a damned Toyota or Hundai.  BLEAH!

      As for PART of a decent stack, feast those peepers here:

       

  3. Stupidity.
    Only one thing will drive silver to the sky: Blood in the streets due to the collapse of the current paradigm. And that could happen at any moment. Today or in ten years. Nobody knows and nobody can predict it.
    The game is easy. Just stack when you have a bit of cash.
     

  4. The bullish move didn’t happen because of tax loss selling and the fiscal cliff?!  What?!
    I haven’t been told a story that ridiculous in late December since I was a child and my parents were pitching the Santa fable to me.
     

  5. With the huge short position the big 4 are sitting on charts are meaningless still. Until something in the markets crashes, or the dollar or euro tanks I don’t think we will see much price action other than the old pump and dump.

  6. Hey, I just noticed something.  That silver horse shoe at the top of this article with the number “7″ and the dice on it… well, those dice are rigged!  Yep, the numbers on the opposite sides of a die always add up to 7 and these don’t.  One shows a 5 on the front but a 2 on the top while the other shows a 6 on the front and a 1 on the top.  No can do.  Heh, these must be government dice!  lol
     

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