This is being written before the Payrolls report is released. So in an hour the whole thing could be obsolete if the report moves the markets. But assuming no/little change…
A couple signals working together indicate that the commodity trades continue.
As posted yesterday at X, the TSX-V index dropped, tested initial support and rammed to a new high for the cycle. I did not mention the target in the post, but you may recall it is in the 800-850 range. So, good headroom.
The weekly chart shows the resistance zone acting as target.
Silver, meanwhile, could be in the process of eliminating the little H&S I stared at the other day. Target back on (again, assuming pre-market translates to the regular session).
And for all the marbles ladies and gentlemen, I present to you the Silver/Gold ratio. It is postured to break upward, which would complete the tailwind for commodities (along with precious metals and even the broad markets in general to a lesser degree).
Bottom Line
TSX-V held support and targets 800-850 as its next and main target. There are others much higher, but we’ll leave those for another day and probably, another cycle.
Silver/Gold ratio indicates that it wants to take a next leg up. It needs follow through. Nominal silver is breaking the small bearish pattern. If this break survives pre-market and closes today in that condition, the pattern will be kaput.
As things stand now, things are point up. Employment data up next.
