Bearish Reversal in Gold & Silver

Bearish Reversal in Gold & Silver

hello everyone this video is being recorded on the early afternoon of Friday May 24th 2024 hope you all had a great week not so much for precious medals it was a rough week considering we have bearish reversals in the sector most notably in Gold looking at the numbers gold lost about 3% on the week silver 2 and 1 12% the stocks the minor ETFs 3 to 4% on the week so looking at those numbers you could say that silver in the stocks held up somewhat well considering gold lost 3% on the week so you do have a gold or a bearish reversal in the weekly gold chart I should say but enough of me blabbing let’s get into the charts so here we have the daily candle charts for gold here at the top silver here in the middle then we have the gold silver ratio at the bottom remember big trend line break in favor of silver but if we’re going to see more corrective action this came down to 75 the first down Target so this could could Rally or go like that for a little while but in looking at Silver I’m looking for this support level to be tested right around 282 29 this you know I know some people think it could come all the way back and test 26 you know I I’m not sure about this I see that as a low probability especially because this was a really strong move like this so I I think this is going to come back I think it’s most likely around here in 29 you know you could maybe you know you could also put a support line here right around 272 to me that would probably be the worst case for silver the worst case scenario so again I’m looking for this level to be tested in silver now with respect to Gold you know you have the 50-day here 100 day here 150 day the reason for those three moving averages is historically if you look at the bull markets in gold and when it’s running and you look at these daily support levels it tends to find a bottom at the 50-day when it’s really hot otherwise it’s the 100 day or the 150 day so looks to me like we’re probably going to see more of a correction here so I doubt it’s going to bottom right here so here’s the 100 day this is coming up here probably is going to hit 2250 next month and here’s the 150 day which will come up like this so keeping those in mind I mean looking laterally this level here still looks really good for a test right at 2250 call it 2245 you have an open Gap here the next level would be this right at 2200 you do have this open Gap here so that to me is what I’m looking at you have this level here then you have here which is that open Gap I right again 2245 I think well my guess would be I think this is one you’re going to see the bottom right here and maybe that intersects with the 100 day or something like that or it could even be the 150 day they could get close together so somewhere around here you know in Elliot wave terms my buddy Ryan Parker told me he thinks this could be an irregular flat now in Elliot wave terms you tend to get an A B C like that that’s how the correction works the most bullish ones when you have a b c like that except this is called an irregular flat where the b-wave actually makes a new high even though it’s a false new high and then the c-wave comes down below here so that’s the a-wave that’s the B wve and then the c-wave could come down here that’s your regular flat ABC down Elliot wave correction so I just wanted to throw that in there but again I’m babbling on here but this is the level that I’m going to be looking at 2245 2250 now looking at the weekly chart yes this looks ugly here this looks like a double top but this is another case where you really need to understand what goes into these patterns like a double top or a double bottom though like a double top that’s a top after a really long uptrend for a long time it’s not you don’t see a break out from a 13-year pattern you go up like that whoop that’s a double top I mean it it could be a double top in a s couple week sents here but this is not something to worry about beyond the next couple weeks or so in my opinion so looking at the weekly chart I mean this shows those two support levels you have the open Gap here right below 2250 and then you have 2200 same thing for silver where you can see 28 29 that’s the level that I would expect to be tested the candle here this is not that ugly like I based on the candles I would be more concerned with this because it looks like a double top and again it could be for a month or so this is a bearish reversal as well but not as ugly as a double top in my opinion but we’re getting into the weeds here so you you know the support levels to focus on for gold and silver I already set them two or three times so I don’t want to talk your ear off now let’s wrap this up and talk about the stocks so I’m not a huge Elliot wave guy on the stocks but what’s really interesting is across the board here you see five waves up you see one 2 3 four five it’s the same for all these again one wave two wave here three four five so a clear five waves up now when you have five waves up you’re in a bull market the next correction tends to bottom or right has to bottom above the previous fourth wave so that was a third fourth fifth so this level here on all these charts this blue line look for the next low in miners to come near but above this line one more point about miners is they have been holding up I don’t want to say outperforming but they’ve been trading fairly well relative to the medal so it’s a good sign I mean you had gold down 3% this week and again the minor ETFs you know looking at my number they weren’t they weren’t you know they were down three or 4% on the week I mean if you normally if you have cold down 3% on the week the minor ETFs should be down 6 7 8% on the week so I still think the miners are holding up really well just in general and there’s not a lot more for me to say here based on these charts again look for the next to come above this line here for GDX 40 and for silge here so we’ll see what happens next week but we’re probably in correction mode for a little while nothing to really worry about it’s healthy and with respect to the miners the good thing about a correction here and now is when you’re looking at the highquality Juniors that I like to focus on they’ve performed really well in the last couple months I mean these stocks are up a lot and they’re starting to get a little expensive for newcomers to the sector so the fact that we could have more of a correction now that’s a good thing for the new people coming into the market you get more of a correction in the miners here you’re going to be able to feel a lot better about buying these highquality Juniors you’re not going to have to chase them and you know if you bought it in recent weeks just buy and hold if they’re Quality Companies you don’t worry about it don’t complicate it we’ll be here to help manage everything and analyze everything as things progress so looks like we’re in correction mode now nothing to worry about thank you so much for tuning in leave a comment on the video and uh I’ll talk to you guys again next week have a great weekend

Gold reversed lower after a false new high, losing 3% on the week. Silver and the miners held up better, losing 2.5% and 3%-4% respectively. In this video we discuss downside targets and support levels in Gold, Silver and the miners.

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