Our followers are well aware that we are very bullish silver for 2023 and beyond, as per our most recent silver forecast. In our detailed silver prediction we listed 4 leading indicators, one of them being gold, obviously. As the year comes to an end we want to assess the state of the gold chart and what signal it may send to the silver market.
It is imperative to work top-down when charting a market or an opportunity.
When it comes to the gold market we used the longest timeframe in our gold forecast which is the quarterly chart. As mentioned, a really large cup and handle formation was in the making.
In this short post we highlight an up to date quarterly gold chart, with closing prices of December 29th, 2022 (note that gold is flat on the last trading day of the year).
There one really important thing that stands out on the longest timeframe of this gold chart: the rejection. It is a major rejection. See our annotation, small circle.
A rejection is a ‘chart event’ that is characterized by two equally large candles, though in the opposite direction. Moreover, the longer the timeframe, the more significant a chart event, any chart event.
If we apply this principle to the quarterly gold chart we conclude that spot gold spent the second half of 2022 working on a major rejection. It started moving lower but after one quarter price went the opposite way only to close at a similar price point as the previous quarter.
What is really means is that gold is refusing to break down. Its intention, at this very point in time, is to continue working on the cup and handle formation.
This is great news for silver investors. This is amazing news for silver investors.
All leading indicators are now supportive of the silver bull run we anticipate. If everything is lined up for something to happen, you might start taking it seriously, is what we conclude.
In our Momentum Investing service we published 2 special editions on silver and silver stocks. First, on Dec 2nd we wrote The Silver Market Long Term Very Bullish. Our Silver Mining Top Picks. for premium members. Second, on Dec 18th, we wrote Portfolio Updates And Top 10 Silver Stocks with our top 10 silver stocks featuring producers and the best silver juniors. Both are instantly accessible to Momentum Investing members after signing up here.