Today, Gold faces a “slipping risk” price point in the chart below at (3).
Three weeks ago, Gold attempted to breakout from falling channel (A) at (2). Results, Gold created a bearish reversal wick, at dual resistance. Since then, sellers have come forward, pushing Gold lower. This morning, Gold is testing bearish rising wedge support at (3). Slipping risk in play!
Gold isn’t the only metals asset that finds itself facing a “slipping risk!”
Silver also remains in a bear market since 2011 highs, creating a series of lower highs, similar to Gold. Silver in the right chart above is facing rising support, that if broken to the downside, would increase selling pressure.
To be long and strong owners of Gold & Silver, one wants/needs to see the Silver/Gold ratio to be heading higher. This ratio has remained inside of falling channel (A) in the left chart above since 2011. 6-year falling resistance was hit at (2) five weeks ago, where it reversed course and then proceed to break 9-month rising support. Further weakness then followed at (3). The Power of the Pattern has been sharing with our members since 2011, to treat all rallies as counter trend rallies until falling channel (A) can be taken out to the upside.
The iShares Silver Trust ETF (NYSE:SLV) was trading at $15.52 per share on Thursday morning, down $0.07 (-0.45%). Year-to-date, SLV has gained 2.71%, versus a 6.85% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of Kimble Charting Solutions.