Historic Gold Silver Ratios VisualizationAfter studying $gold and $silver History, decided to graph the Ratios ($GOLDSILVER). and this is the final result for an easy view
GOLDSILVER
XAGUSD Possible 1H PennantWhile FX_IDC:XAUUSD is doing a reversed shampoo, FX_IDC:XAGUSD is forming a nice pennant which could possibly breakout at the same time as its cousin.
Long Entry: 17.911
SL: 17.85
TP: 18.16-18.74
Any feedbacks are appreciated
Gold - Bounce towards $1,275 is nextOnce again I am looking at the weekly chart for gold which is oversold and close to very strong support around $1,190 - $1,210.
Of course the price action during the last 18 weeks has been disappointing but there is still a good chance that this is the typical deep retracement after the first up-leg in this new bull-market. In the next step gold needs to break the five year downtrend-line currently sitting around $1,325.
But below $1,170 - $1,180 the "just another bear-market rally" thesis is confirmed.. Remember my head&shoulder backup plan from a months ago...
In any case I expect a bounce to start from $1,210 next week targeting at least $1,275! Buy gold!
Gold/Silver ratio: Long term bearish declineThe Gold/Silver ratio shows an interesting setup here, and correlation to inverted SPX, which points to the nature of the ratio's movement tied to risk off/on phases. This has to do with the real world applications silver has as an industrial metal, compared to gold's function as a store of value and risk off protection.
I think we can see a long term decline, implying the price of silver will either appreciate or depreciate less than the price of gold, in comparison to it at least.
It's probably a good trade to take as a pair, which if you're using futures, implies you use a 2 to 3 ratio, selling 2 GC contracts and buying 3 SI contracts to enter the trade with reduced margin requirements. (I think there's a new contract for the ratio alone, but not familiar with it). You should size the trade based on risking 1% to 2% max if the price were to go against you coming back to 70.43.
In the case of CFD or FX traders, you could open trades in the XAUUSD and XAGUSD instruments, or using this XAUXAG or XAGXAU contracts if they exist in your platform. If you own physical gold, exchanging it for silver makes sense at this point (if you didn't already).
Good luck,
Ivan Labrie.
GLD/SLV: Sell your gold for Silver!We have a nice setup here, you can take an equal dollar weight, which if trading futures, is roughly 2:1 on silver vs gold allocation (long/short). With stocks it's simple, I reccomend a 7% capital allocation to this trade, per side and no stop loss.
This is quite easily a 4R trade once it pans out favorably.
Good luck!
Ivan Labrie.
PS: Contact me if interested on trading signals, or private tuition.
