Gold and Silver the Medium to Long Term Trend

8/3/2019 Gold and Silver the Medium to Long Term Trend

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whether the "loss of confidence" gets worse along with the global conditions we

are dealing with.

I've circled the chart in red where the lower dotted panic line and the upper gold

main channel lines are intersecting. NOTE how the wild price swing is right in

between the major lines. In other words --- this is where the "battle" line for the

long term bull market resides at the moment.

If you think it through --- there is only two directions gold can take from here.

Above the upper main channel line and into the panic channel ------ or a break

below the lower blue dotted panic trend line. THERE IS NO OTHER CHOICE.Thus it would stand to reason that above the GOLD main channel line and the

trend IS UP. A break below the lower dotted blue channel line --- and the medium

term trend will be down. In between is neutral territory. The roadmap for the next 6

to 12 months lines within these channel lines and will be our guide to whether the

trend is up or down.

Since we have no control of price ---- then the key is to follow it where it wants togo. These two long term trend lines will give us trend direction and potential

velocity. While we all have an opinion of where price is going --- it is the market

and the market alone that dictates WHERE it does end up going. The next best

thing we can do then -- is figure out where the turning points are. This is one of

them. Join us as we track the 21st Century Bull Market.

Gold - A weekly close below 1643 would be bearish, a weekly close at or above

1680 would be bullish. Some lateral resistance at 1655 to 1665. A move above

1702 would allow PoG to move up to 1770ish or better. 1595 appears to be set upas critical support in the short term, a break of which invites a move down to test

1440 to 1510


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Silver

This weeks big move wasa result of silver finally moving above the lower uptrend

line. For four weeks price has been stuck between the the long term blue line and

this uptrend line. THE long term blue line is the MOST IMPORTANT Line in the

entire silver market for this reason ------ all of the old highs were where this line

would "HOLD" price as resistance. Look at the 2006 and 2008 highs on the chart

below. Now look at where the explosion higher was ----- right at this long term

blue line. And now the CORRECTION into this major long term line has held theline on a MONTHLY CLOSING BASIS as October is going to not only close

above the long term blue line --- but now most likely in the uptrend channel again.

There is only really one more hurdle that silver must over come and that is for our

LONG TERM TRENDS. Look how price is arriving at the major moving

averages. This line provided support throughout the entire run from the 20 dollar


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area. Now price is arriving once again at these lines. There are two things to watch

for. First, the BLUE line must be above the RED line for the trend to be up.

Second --- price must have weekly closes (at least two of them in a row) to favor

the uptrend has resumed. These moving averages are where the next major

RESISTANCE AND PRICE TEST FOR SILVER IS. As far as pullbacks --- thelower white channel lin line near the 33 area should be strong support for the

coming week.

Key MT support still at 28.41. There is a bullish CnH formation present that

could propel PoS to a calculated target of 37.55 if the rim line is breached

at 32.70 this week. This bullish pattern will die if 28.41 is broken first and

possibly produce a fall into the $25 range

ST support range is 32.92-33.57 and look for resistance in silver at the 36.50-37.55

area

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Gold and Silver the Medium to Long Term Trend

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