This is going to be an interesting idea.
The XAUXAG ratio dropped to a multi year support at 81.
Actually this is a 6 year - multiyear - support line. It's way too stretched below every moving average, printed a bollinger band crash signal.
I'm waiting for at least of the tag...
XAUXAG ratio to go to 20, could possibly go lower, that's a strong case for silver. Not betting so much on the pullback, but the dollar strength could initially mean a dip in both Gold and Silver, but when the bounce back silver will gain at a much faster rate than gold.
Not a bad idea to jump in now if you are not using leverage.
What do you think? Drop a...
Plan to enter:
- Market enter if we close below blue line
- Limit short orders are laddered in the box
- SL is a close above dotted blue line (confluence of high price significance & .236 fib & wave four of one degree smaller)
Expect to interact with blue dashed line.
Looking for reversal between 55-65
Silver has had a strong leg against gold
Not overextended yet, but wouldn't be weird to have a common retrace to common fib zones
Expecting continuation of silver strength but needs a breather short term
It simply means silver is better to buy performance wise than gold.
Question is Silver could be the new gold?
How & Why?
Silver is seen as a better reflationary asset a hedge given from industrial and tech applications
Most of half the silver material is used in tech electronics such as connections, wires and jewellery
Silver is out performing gold
I believe that Gold over time will outperform silver. Both commodities has the status as safe havens and hedges against USD. Silver does have some industrial qualities that gold does not, but I stille believe in the statistics, and have decided to buy XAUXAG.
Today we will talk about Silver and its price action from Elliott Wave perspective.
Metals are in an impulsive rally, especially Gold, but since March, Silver is doing much better if we take a look at the GOLD/SILVER ratio, which is now turning bearish and there's actually room for more weakness after recent corrective slow down. So, it means that...
Illustrated above we can see a continuation/reversal falling wedge that suggests the bulls might be looking to take over. If this happens, we could a strong bump in Gold while Silver struggles to keep up.