Friday, October 31, 2014

Before the Bell: Silver (SLV) to $13.00 and Gold (GLD) to $96.00

I had already shorted gold and silver with DSLV and DGLD so yesterday was a good for me. Imagine my surprise waking up this morning and going to and seeing the KITCO ticker saying gold was down $27.00 (now down $33.60). At the time of writing this silver is down 2.1% and gold around 2.6%. I've posted the monthly charts for two reasons. The first is that my daily and weekly charts are already so low I simply don't have any space left, and second, long term perspective after a catastrophic fall like this requires only long term thinking. I've been bearish on precious metals since mid summer and in my commentaries I have not let up on this theme. Posted below you will see the current monthly channel that SLV and GLD are in. The lowermost support line for SLV comes in at about $13.00 and around $96.00 for GLD.

SLV is leading GLD in this fall (extremely bearish) and has already passed through it's 62%, 50%, and 38% Fibonacci levels. Except for support at $13.00 it's entirely possible for SLV to breakdown from the descending channel like many commodities have already.
GLD: Gold Index ETF Monthly Chart
SLV: Silver Index ETF Monthly Chart

Jakob Richardson © 2014