Pay Attention to Gold and Silver - Special Reoprt

Every morning I rise early and take a quick look at the charts of my favorite metals, gold and solver.

If you have been following my posts, gold and silver have been in a defined DOWNTREND since March of 2022.

Then over the last few weeks both gold and silver have appeared to put in a defined bottom. Although not a perfect bottom to declare an end of the DOWNTREND, enough to note that gold and silver had at least gone into a NEUTRAL pattern.

What I have been looking for is a more definitive HIGHER LOW and HIGHER HIGH to call an end to the DOWNTREND and more importantly the establishment of an UPTREND.

So what am I seeing this morning to warrant a special report?

If, and this is a big IF, gold can hold yesterday's LOW and then take out the recent HIGH of $1791.80 on November 14th with a solid up tick, well then my friends the BULLS are back in charge.

It all depends on your goals. As a stacker, there is never a bad time to buy physical gold and silver. However, as a trader. the number ONE rule is the trend is your friend.

For months, the precious metals have been in a DOWNTREND, thus going LONG mining shares or paper metal contracts has been a fool's game.

If gold can establish a HIGHER LOW and a HIGHER HIGH, then the trend changes to an UPTREND.

I am waiting for this pattern to be firmly established before trading to the long side.

I will also note that seasonally gold and silver tend to be in a downtrend in the Fall and put in a significant LOW in late November and early December.

Trading is a game of patience, so for me the long side is not there yet BUT the charts are looking good today.

Silver is looking even better than gold. The chart is showing a more clearly defined HIGHER LOW and HIGHER HIGH. Last week, silver broke out of a well defined range between $18 and $21 per ounce. The recent pullback is testing the top of that range. If silver can hold here, what had been resistance is now support.

What would signal the next up leg in silver?

Two things, first silver needs to stay above the $21 and then take out the last HIGH of $22.38 on a strong move.

An UPTREND is defined as a series of HIGHER HIGHS and HIGHER LOWS.

What do you think? Is silver in an UPTREND or is this a "False Breakout"?

Well the market will let us know soon enough.

If Silver establishes a HIGHER LOW here at the $21 per ounce level and then takes out that recent HIGH, I think we will have our answer.

I will be very excited about the mining shares IF the HUI can establish a HIGHER LOW above 179 and then take out the recent HIGH of 227.

So I get real bullish on the mining shares if the HUI breaks out above 227 after a clearly defined higher low.

We are not out of the woods just yet, but it does appear that a baby bull is being born.

source: JM Bullion

The premium on Silver Eagles remains stubbornly high at $17 per ounce.

Peace Out and Stack On!