We all have our way of looking at chart patterns and projecting where we think a chart is heading. Given the sell off in the precious metals sector last week I think it’s a bit of a game changer in terms of where gold and silver are heading in the short term. I may be way off in my targets but if I’m going to buy into a massive sell off I want to make sure that I’m getting a bargain.

The metals may bounce next week, but the levels that I would like to see them fall to where I would consider them a screaming buy are as follows:

Gold $1517

Silver $22.45

These targets will fluctuate as the charts themselves shape up over the coming weeks…and quite frankly…at the rate silver fell on Friday we could easily hit my target if more stop losses and negativity hits this sector. But there does seem to be support for silver in the $30’s level as well as $26 from when Eric Sprott opened one of his funds. I had to view silver on a monthly chart to get a clear picture of where support was where a weekly was sufficient with gold.

Keep in mind if we do hit these levels I fully expect it to be quick with a sharp rebound ensuing as buyers will likely come in and support these levels.

 


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10 Responses to “Silver and Gold Targets”

  1. rajesh Says:

    jeff, 29 very strong support . dont think this could break very soon. even if does, wont sustain. eventually 22.5 might happen, but think 27 becomes a fantastic price for an entry. on the upside , think 34.5 to 35 now a very strong resistance. let the range play out. my early 2014 tareget is 120 , with a stop at 22. sticking my neck out on this one. based on monthly charts and history. if you have consensus of 22 or 25, its not going there!

  2. rajesh Says:

    yr view?

  3. rajesh Says:

    a crazy upmove could take it to 37, but difficult to take a call on it at the moment

  4. rajesh Says:

    jeff,
    silver looks crazily oversold on bollinger bands, though rsi and macd would go down further. specially the lower bollinger band. soon you r goi ng to have a universal call on silver going to belo w 20.! already prices r attractive.

  5. jeff pierce Says:

    Part of me thinking that we get to my targets in a hurry is margin calls and all around liquidation if the general markets tank. It would only take one to two more days of violent selling.

  6. rajesh Says:

    nothing in the markets come at a bargain. people realise this in hind sight. impossible to time a bottom. . you had a blow out top, which is neutralised by a blow down bottom!

  7. jeff pierce Says:

    You may be right that we bounce, but I think ultimately we are heading lower. There are many holding losses in the metals and will put pressure on them.

  8. abdul Says:

    I think the bear already got so tired after the drastic drop and may already fallen asleep. If it’s just talk and no action on euro, then we could be in on another volatile week. Anyway the US dollar have now taken the centerstage for trading until some high profile like Roubini come out and say that this junk and only then investors will flee again to precious metals. It’s like a zig-zag, where the bulk of money goes, there are always crowd of people there. Just like 5 million prize for X-Factor, look at crowd outside the audition, Bro.

  9. Lioncub Says:

    I think, I would buy GLD (not slv) on Tuesday EOD of markets for the following reason.
    — New moon is on tuesday, this makes Mercury as the king of next new lunar month. Interestingly Mercury is in exalted house already. This, I think should give an immediate jump on Wednesday for precious metals. Silver may see a bit fluctuations but overall, PMs should be higher from Wednesday.
    Personally, I doubt silver reaching 22.5 but I expect to see 26$ in the next 2 trading days.

    Regarding markets – Monday – volatile, Tuesday – red, Wed – looks liiiiiiiiike red most probably, Thu- very volatile, may see recovery in afternoon, Fri – tough to say, expecting volatility but green overall. first week of october looks much better.

    Good luck and happy trading.

  10. Marcelo Says:

    There was a clear H&S formation on GLD , so 155 should be our stop loss .
    Great Blog , thanks !!!

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