A brief update on gold, silver and the miners as we carry forward NFTRH 866’s analysis
Daily charts: Gold, silver, miners, Silver/Gold ratio
Gold is holding its bull flag breakout and has worked off its overbought situation.
Silver is doing as silver does when it gets a move on. It is spiking in an impulsive manner. It is homing in on the target area.
Silver/Gold ratio continues to impulse upward as well, unleashing commodity/resources trades as anticipated. It is becoming extended upward within its downtrend.
GDX looks to open slightly positive this morning after holding firm yesterday.
As noted in #866, the HUI/Gold ratio is constructive but the situation is frothy (e.g. BPGDM). Also noted:
The play is already highly profitable and risk is rising right along with price. The target is HUI 500, but it’s just a target. HUI is about 150% above the ‘4’ low. The target is only about 14% from last week’s high. I believe this warrants consideration of a selling strategy now, rather than after the target is registered, which is “not a sure thing” (Captain Obvious), it is a long-standing projection.
Bottom Line
This is the time for traders to understand they are traders. Profit-takers to understand that was their original objective, and longer-term holders to realize that this rally is likely in its finishing stages.
Now, this is just a guy with charts making these projections. But I have been making them since 2023. So I am not going to get overwhelmed with greed or self-satisfaction now. At the moment I am still naked (no hedging) with all positions I had last weekend. But again, 14% from target vs. 150% already in the books demands a strategy, assuming that the projections turn out to be stop signs.
No law says they have to, but I am personally not going to start doubting my own projections now.
