SILVER GAP-UP INTO THE OPEN
TODAY, MONDAY, JULY 31ST 2017
SD Exclusive Monday Market Outlook
What a difference a week makes. After struggling early on last week, after a hesitant Fed and a lip-sticky
pig GDP estimate for the 2nd quarter, the silver price is breaking out here early Monday morning in the pre-market action. Rally possible as early as today. First there is this:
Silver solidly punched through and closed above the 50 day moving average on Friday. Today looks to be a gap-up at the open. Silver can break-out to the upside in a big way here!
Then, there’s the bullish performance and momentum since last Friday, as show in the 3 Minutre Chart:
Adding momentum to the rally could be the pandemonium and chaos caused by the Bitcoin hard fork tomorrow. Between suspended accounts and uncertainty, silver is set to shine brightly. Look to the price of gold for strong upside. On the 3 Minute chart, we can see gold’s gap up last week. The close was also solid last week, and, and gold has dutifully stepped up to the plate for its traditional “safe haven” role amidst all the uncertainty:
Last week most major market indexes hit new all-time highs last week. Seems harder and harder to go only up and up. Usually if someone keeps blowing air into a balloon, at a point it will pop. No graph needed, cause well, we have seen those new highs again and again and again.
Crude oil (WTI) is also on a strong, momentum filled rally since last Thursday. Oil is testing resistance at $50, so be looking for a move in black gold this week as well:
And finally, for the US dollar, things have not been looking good since last week, and with the strength in gold and silver, and the uncertainty in the cryptos, this is not looking good for the greenback. For now, it seems bullion is bid and the dollar is bust:
Friday is Non-farm Payrolls day with the latest jobs report comes out from the BLS. Between the precious metals break-out, the hard fork in Bitcoin, and a indicators of how many summer jobs were had, lost or non-existent for the month of July, we may be witnessing an abrupt end to the summer doldrums.
Looks like it is going to be a great week to be a silverbug!