Gold & Silver: Silver Hits Support As Gold Cracks Consolidation

Aibek Burabayev - INO.com Contributor - Metals


The recent collapse of the top precious metals shouldn't be a surprise if you read my previous Gold & Silver update in November, where I called for the upcoming “storm” after the “calm.” In this post, I’ll share with you the updated charts of both metals.

I changed the order of the charts, and this time I would start with silver as it reached the first decision point ahead of gold.

Chart 1. Silver Daily: First Target Reached

Daily Silver Chart (XAGUSDO)
Chart courtesy of tradingview.com

Silver has a strong bearish structure as the red long-term trendline keeps the pressure on silver. The second leg of consolidation within the black parallel channel lacked power as the price couldn’t reach even the top of the first leg established in October at the $17.47 per oz. It stalled at the $17.39 per oz. and then collapsed for more than a half of a dollar to check the consolidation support. Continue reading "Gold & Silver: Silver Hits Support As Gold Cracks Consolidation"

Top Silver Miners Are Vulnerable As Silver Hits Refreshed Low

Aibek Burabayev - INO.com Contributor - Metals


Silver (FOREX:XAGUSDO) hit the previous low set in October at the end of last week in line with my expectations posted earlier. It undoubtedly affects the silver mining companies’ stocks, and in this post, I would like to update their performance for you.

The top silver mining stocks filtered last time by ROE are SSR Mining Inc. (NASDAQ:SSRM) (former ticker SSRI), Coeur Mining Inc. (NYSE:CDE) and Pan American Silver Corp. (NASDAQ:PAAS).

Chart 1. Top Silver Stocks By ROE Vs. Silver: No Winners

Silver vs. Silver Miners
Chart courtesy of tradingview.com

The chart above begins on the 8th of September, 2017 when silver shaped the peak and started to drop. For the past three months, there are no winners here. Silver (black) lost the least, but still a significant -8.5% for this short period. If you read my earlier post about the top gold stocks’ performance you found that there was at least one stock (Golden Star (GSS)) with the positive dynamics. Continue reading "Top Silver Miners Are Vulnerable As Silver Hits Refreshed Low"

Gold & Silver: The Calm Before The Storm

Aibek Burabayev - INO.com Contributor - Metals


In September I warned you about the possible weakness in both gold and silver after a good rally as strong reverse signals appeared on the chart. That warning alert paid well as the metals dropped heavily – gold lost more than 7%, and silver fell more than 10%. I hope it helped those of you who had market exposure that time.

There are updated charts below with further price action forecast, which is based on pattern recognition and market staging approach. I hope my detailed graphs with annotations will help you understand market behavior, training your eyes to recognize patterns and determine market stages with me.

Chart 1. Gold Daily: The Baby Bird Could Fall Out Of The Nest

Gold Chart
Chart courtesy of tradingview.com

In the previous gold chart I put two zigzags to show you possible paths for further price action, the red zigzag was the main option, it showed the downside move with a small consolidation inside. In reality, the drop has been even sharper with just a minor correction within. Continue reading "Gold & Silver: The Calm Before The Storm"

Gold & Silver: Beware Of Correction

Aibek Burabayev - INO.com Contributor - Metals


What goes up should come down. The precious metals are in a good bullish move, but one should be prepared for the possible downside corrections ahead as the natural phases of market cycles change again and again.

Chart 1. Gold Daily: Channel’s Top Hurdle

Daily Gold Chart
Chart courtesy of tradingview.com

When it comes to money, people start to excel in math, even if they didn’t in school. And so did I when it came to the market analysis, I started to understand both the beauty and power of geometry in the trends even though I didn’t like this subject in the school.

The price of gold made a tiny puncture on the upper side of the blue ascending channel but then retraced to close below it It’s another illustration of how powerful the trend channels can be. However, even if it gets broken, again, it will add more value as evidence of an even stronger price move.

There's almost $17 left for gold to hit the previous major top, but it vanished behind the channel’s top as does a setting sun behind the mountains. What’s next? It’s the perpetual question in the markets. Continue reading "Gold & Silver: Beware Of Correction"

These Stocks Could Offer A Bargain As Silver Soars

Aibek Burabayev - INO.com Contributor - Metals


Silver hit a 3-month high last week, but there is still plenty room for gains on the way to the conservative upside target above $21 level.

Last week I analyzed the top gold stocks, and I thought it would be interesting to look at the silver stocks to see if there are good opportunities amid Silver's growth. My previous update on the top silver stocks ranked by P/E was posted in July. This time I will use ROE (return on equity) as a selection criterion.

Table 1. Top Silver Stocks By Return-On-Equity (ROE)

Top Silver Stocks By Return-On-Equity (ROE)
Image courtesy of finviz.com

Top 3 silver stocks by ROE are SSR Mining Inc. (SSRM) (former ticker SSRI), Coeur Mining, Inc. (CDE) and Pan American Silver Corp. (PAAS) .

The leading silver stocks show pale performance compared to the top gold stocks, which have a ROE range between 10% and 30% while only one of the silver stock’s reading is above the 10% threshold. But the ROE above 8.5% is still an outstanding performance overall. Continue reading "These Stocks Could Offer A Bargain As Silver Soars"