GOLDSILVER RATIO LONG
I recently posted a chart of silver showing the bearish case, I also shared a bullish case for the dollar. In order to confirm the theory of those two I share the gold silver ratio. It is obviously in a bull trend. it has been stair stepping up major fib resistance from the low in 2011 and a smaller sequence from 2016. firmly above the 61.8 on both and well positioned in the upward trend lines
-24th jan an obvious break out of the downward sloping wedge with conviction after testing the lower trend line and 50% fib from 2016 low.could even argue it is Head and shoulderish for this break
-MacD and RSI still have room to move before being oversold/overextended.
I see no reason why we cannot push to 100 or even to 110 before year end. this could be a combination of weak silver vs gold with gold not changing or gold moving up and silver not doing much.
time will tell.
-24th jan an obvious break out of the downward sloping wedge with conviction after testing the lower trend line and 50% fib from 2016 low.could even argue it is Head and shoulderish for this break
-MacD and RSI still have room to move before being oversold/overextended.
I see no reason why we cannot push to 100 or even to 110 before year end. this could be a combination of weak silver vs gold with gold not changing or gold moving up and silver not doing much.
time will tell.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.