Last year when looking at the possible double bottom scenario, an imagined breakout looked something like what we have just seen, especially in the cash trade where prices rallied to a serious resistance level.
The Double Bottom scenario assumed that we would break through resistance and then back down to test the break out level. Support here, at just underneath 20, would then be the launching pad to prices that I expect would test the highs. Just look at gold. Silver is catching up and should monetary conditions continue as they are, hard assets of all types will certainly continue to move higher until such a time that the dollar is wiped from the face of the Earth.
The worst case scenario is that over the long term, we had merely corrected to the .328 fib level and precious metals become again the worthless relic of the past. Don't think so, especially as the virus threats continue and precious metals supply continues to be endangered.
In any event, as mentioned before, wave 5s can be stunning! This is wave 5. As with all five wave impulsive moves, an A-B-C correction usually follows. Make sure you have some cash on hand to add on as additional waves higher are sure to follow.
The Double Bottom scenario assumed that we would break through resistance and then back down to test the break out level. Support here, at just underneath 20, would then be the launching pad to prices that I expect would test the highs. Just look at gold. Silver is catching up and should monetary conditions continue as they are, hard assets of all types will certainly continue to move higher until such a time that the dollar is wiped from the face of the Earth.
The worst case scenario is that over the long term, we had merely corrected to the .328 fib level and precious metals become again the worthless relic of the past. Don't think so, especially as the virus threats continue and precious metals supply continues to be endangered.
In any event, as mentioned before, wave 5s can be stunning! This is wave 5. As with all five wave impulsive moves, an A-B-C correction usually follows. Make sure you have some cash on hand to add on as additional waves higher are sure to follow.