Silver September Shift; Gold/Silver Ratio Poised for Major Reversal.
09/17/22 Weekly Re-Lay – “Gold & Silver are diverging with Silver still portending a September surge while Gold dropped to new lows… Gold & Silver are expanding their recent divergence with Silver pulling back to a ‘b’ wave low – and holding short-term support near 18.70/SIZ – as Gold dropped to new lows and retested 1 – 2 year support near 1680.0/GCZ. Both remain in intra-year and weekly downtrends but the intermediate action has been conflicting.
As Silver’s action is slowly validating expectations for Sept ’22, and increasing the likelihood for a quick accelerated rally… Gold was unable to create any upside momentum, attacking weekly resistance to begin the week and then reversing lower.
Its projected 2 – 3 week rebound was cut off at 2 weeks and ushered in a drop to new lows. At the same time, Silver was closing above its weekly AND monthly resistance while turning its daily trend up (Gold remains in a daily downtrend), providing additional signs that a 2 – 4 week (or 1 – 2 month) low was already intact.
Consistent with what was described in recent months, Sept ’22 was/is the likely time for Silver to begin to overtake Gold – in respect to the magnitude of its gains. Platinum is trading similarly with Palladium a little weaker but still resilient…
A weekly close above 22.20/SIZ would be necessary to neutralize the intra-year downtrend and potentially elevate this rebound. (If Silver manages to rally above and close above 22.80/SIZ, it would create a more bullish scenario for the ensuing correction. The ramifications of that [reserved for subscribers]…
Gold & Silver are mixed with Silver (and other metals) reinforcing the outlook for Sept ’22 while Gold is lagging and failed to match Silver’s reversal signals of the previous week. Gold rebounded to its declining daily 21 Low MAC – even as Silver had already exceeded its daily 21 High MAC and was pulling back to it – creating conflicting 3 – 5 day signals to begin the week.
Silver is still developing a potentially bullish pattern with this indicator. It closed above its declining daily 21 High MAC on Monday as it turned its daily trend up – a lagging/confirming indicator that usually times an initial high… To complete this reversal pattern, Silver should now [reserved for subscribers]
That would likely spur a surge to ~22.50/SIZ – equaling Silver’s Feb/Mar ’22 rally while testing the 2022 opening range and the highs of late-May/ early-June ’22. (20.26/SIZ is the weekly LHR.)”
Silver is slowly validating what has been discussed throughout this year – that Sept ’22 would usher in the time 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, but the subsequent action is what could be the most revealing.
How Quickly Can Silver Surge to ~22.50/SIZ?
What Does (Potential) Shift of Gold/Silver Ratio Portend??
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.