I am always prepared to be wrong because well, it happens, so might as well prepare for the inevitable. Gold and silver are threatening to break consolidation this morning and if the miners follow suit as would be expected, the favored target of HUI 280 could go by the wayside. Bull markets don’t always correct to neat, logical points and that’s especially so with such a dynamic, noisy backdrop as we’ve got today.
Gold has broken another fan line and popped its head above the SMA 50. Now only the October high at 1940 stands in the way of a greatly increased likelihood that the correction will have ended.
Silver has also taken out a second fan line but is thus far only testing its now down-sloping SMA 50. The October high at 25.77 up to lateral resistance at the 26 area will be the gatekeeper for silver.