Silver Projects Surge to ~24.50/SI; Gold Confirming 4Q ’22 Cycle Low.
11/09/22 Weekly Re-Lay Alert – “Early-Nov ’22 Cycles Validated; CPI on Radar… Gold and Silver extended their surges to begin the week, reinforcing the outlook for a sharp rally into Nov 11 – 16…
Silver has been steadily gaining ground since Sept 1, setting a series of four successively higher lows, while Gold has been in a bottoming phase after fulfilling a 66 – 69 day/~9.5 week high (3/08) – low (5/16) – low (7/21) – (low; Sept. 26 – 28) Cycle Progression with its late-Sept low.
That low has held during two successive tests, ushering in the time (after the first 3 trading days of the new month) when an accelerated rally was most likely. That quickly took hold on Nov 4…
The fact that Silver took longer before breaking above 21.00/SIZ increased the upside potential for that ultimate breakout (which has just taken hold). This should spur a quick surge above 23.00/SIZ and is likely to extend that rally up to 24.50 – 24.90/SIZ. (Several daily LHRs surround the weekly LHR, making a surge above 23.00/SIZ still possible this week.)
Since early-July, Silver has also traced out an inverted head-and-shoulders with the neckline at ~21.00/SIZ (left shoulder = July 14 penultimate low, head = Sept 1 ultimate low, right shoulder = Oct 14 secondary low).
That also forms a type of range-trading pattern in which a close above 21.00/SIZ projects an equi-distant move as the ~3.50/SIZ range between the neckline and low – projecting a rally to ~24.50/SIZ.
24.50/SIZ is also where Silver initially found support after its early-March peak. The next level of support was ~21.00/SIZ… and then ~17.50/SIZ.
(On a weekly-close basis, Silver has traded in ~3.00/SIZ ranges since before the March ’20 low – with parameters at 12, 15, 18, 21, 24, 27 & 30.00/SIZ. As a result, the likely scenario for a peak would be an intra-week spike up to ~24.50 and a weekly close at or below 24.00/SIZ – during whatever week that takes place – to reinforce that next target range.)”
Silver is validating projections for a Sept ’22 shift when a 6 – 12 month (or longer) low was likely and when Silver begins to overtake Gold and sees stronger rallies due to multiple factors. Silver’s initial intermediate advance is projected to take it up to 22.50/SIZ with the potential to surge as high as 24.50 – 25.00/SI before the end of 2022. Platinum is showing similar signs of developing strength and should rally through November. Gold retested its late-Sept ’22 low and held, triggering an intermediate buy signal in the days that followed.
What Does (Potential) Shift of Gold/Silver Ratio Portend?
How Does Current Action Corroborate 2023 Outlook??
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.