Gold, Silver To Range Trade Near-Term Before Big Breakout Higher

 | Jan 27, 2019 12:18AM ET

f you have been following some of the research posts by some of the biggest names in the precious metals industry, you may understand “why” so many people are so excited about the opportunities in Gold and Silver recently. There are so many facets to the fundamental and emotional functions of precious metals as an industrial commodity as well as a safe-haven investment to protect against risk and to hedge against inflation. Old school traders were taught to “watch gold, oil, and bonds” for signs of concern, weakness and as a means of gauging total market sentiment. The idea behind this statement was these market tend to act as the “canary in the coal mine” in terms of fear and risk.

Recently, we posted an article that suggested Gold, Silver and many other precious metals would move in unison as this new price expansion takes place. Many of our modeling systems are suggesting that Gold will rocket well above $1400 sometime near May or June of 2019. These predictive modeling tools help us to identify opportunities and price moves well ahead of the other research firms available today. Our unique tools can actually pinpoint times/dates when breakout moves should take place and allow traders to prepare for these moves months in advance – like today.

Within this article, we are attempting to highlight the fact that any lower price rotation in Gold or Silver would be an excellent opportunity for skilled investors to target new positions or to acquire more physical material. We believe Gold and Silver will continue to rotate near current price levels over the next 30~60+ days while setting up a moderate range of rotation. Buying near the lower range of this rotation will allow traders to set up advantageous long positions ahead of the suggested breakout dates and really capitalize on any upside advance. Let’s go over some of our expectations as we prepare for this next move higher.

First, our TT Charger system on this Monthly chart shows that the core price support/resistance range, the CYAN, and RED narrow price channel, is currently just below $1300 and moving slightly lower. This is important because this longer-term chart is reacting to the price peak from 2012 and this price channel is currently providing a resistance zone that we expect the price to break above in a very aggressive manner. You can also see the BLUE DIAMONDS that represent current bullish price trend. Since early 2016, the TT Charger modeling system has identified Gold as being in a bullish price trend.