We Need To Talk

Does this chart look Bullish or Bearish to you?

The reason I ask is because tomorrow, the United States will issue a report concerning inflation.

So can we talk?

What do you think more inflation or less inflation?

Personally, I think we will get confirmation that the prices of just about everything is too dang high!

Let's take a look over at the price of silver, so as to not get ahead of ourselves.

So what do you think of the price action on silver, bullish or bearish?

To me, and this is just me, it looks like the price of silver is about to roll over to the downside.

It has not happened just yet BUT unless there is a HUGE move to the upside, silver looks to be targeting last month's low of around $20.40 or BELOW.

Perhaps the gold mining stocks can give us a clue as to what the heck is going on here.

That blue line is long term support for the HUI gold mining index.

How long term?

I posted this chart in March of last year, talking about this level at 252.43. original post: Mining Shares at a Critical Juncture

Over a year later, the miners are back where they started.

Here is a weekly chart to get a better overview.

You can see how this area has acted first as resistance, back in 2020, before the COVID crash and thereafter as support.

Both silver and gold were LOWER last March when the HUI index last fought along this line.

The purpose of pointing these things out is not to convince any of you which way the price of silver and gold are heading. Rather the purpose of this post is to make you aware that once again the precious metals complex is at a critical juncture. This could go either way.

BUT here is a FUN FACT: On June 11, 2020 the HUI hit a low of 249.96 and then went on a HUGE rare two month rally that terminated on August 5, 2020 with a HIGH of 373.85. Rarein the sense that gold and silver usually are rather dull in the Summer Months. Today the HUI hit a LOW of 249.55.

The rally of 2020 is the basis for the 252.43 support line.

The real question in my mind, and this is a BEARISH question, is whether the HUI will start retracing the move from the COVID LOW to the August HIGH? Which would imply even lower levels in the HUI.

As to the BULLISH side of things, the charts as they stand today, look UGLY. There is no other way of putting it, ugly is ugly.

Perhaps, tomorrow's inflation report will spark the metals higher. Any bullish move that does not take out the HIGH in the HUI on June 2nd of 269.64, holds no interest to me.

However, any BEARISH move below today's low is very interesting.

The silver lining in all of this is that silver may shortly be on SALE.

If we get a nice dip, I might have to start my weekly trips back to the coin store.

Peace Out and Stack On!