Back in 2011, the ratio hit highs that took place in the early 1980’s and it’s been downhill for Gold and Silver ever since. Could the long-term trend in metals be about to change?
The decline in the ratio now has it testing 20-year support line (1), which has held several times over the past 20-years.
Over the past couple of years, the ratio has tested line support line (1) at (2), which has held. While testing line (1), the ratio could be creating a bullish inverse head & shoulders pattern.
Joe Friday Just The Facts; If the read of the inverse head & shoulders pattern is correct and falling resistance is broken to the upside at (3), the ratio could be sending a bullish message not seen many times over the past 7-years!
What do metals bulls NOT want to see? Support line (1) fail to hold!!! If it does, the ratio would continue to send a concerning message to the precious metals markets.
The SPDR Gold Trust ETF (GLD) closed at $126.96 on Friday, up $1.52 (+1.21%). Year-to-date, GLD has gained 2.68%, versus a 4.14% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of Kimble Charting Solutions.