Incoming 40% correction on Gold / Silver ratio

18 mag

The above 12 day chart a 40% increase on the Gold / Silver ratio since early 2021 within a rising channel is shown. A number of reasons now exist to suggest a strong reversal in that trend with an equal 40% correction. They include:

1) Hidden bearish divergence. This occurs as oscillators print higher highs with lower lows in price action. (Black arrows).

2) A rising channel breakout. The breakout in the Gold / Silver ratio is clear to see with a flag extension measuring a further 40% correction. The correction area is by no means the end of the correction. Look left.

3) It is not the first time a hidden bearish divergence has printed on the Gold / Silver ratio. The last flag breakout occurred in October 2010. Price action on Gold saw a 40% correction in the months that followed. Ask yourself, is the current Gold euphoria indicative of a new bull market or the contrarian call for the top?

Ww

23 mag

Trade attivo

Gold has now dropped $120 from the 2450 peak at the same point the ratio breakdown confirmed. Expect corrections in Gold price action to continue in the weeks ahead as long as the ratio continues to breakdown.

7 giu

Trade attivo

The ratio continues to collapse. Reading through the comments it is clear some believe this is bullish for Gold price action. Full transparency, I'm short. With leverage. Easiest trade in the history of trades.

2-day

20 lug

Trade attivo

The Gold/Silver ratio climbs to backtest the bear flag and confirms past support as resistance. This confirmation will see the ratio correction continue resulting n a strong correction for Gold price action. On the weekly Gold chart a hammer candle print is visible. A 10 to 13% correction should be expected to backtest past resistance as support.

Weekly

28 ago

Commento

The whole recent rally in Gold price action (lower) is exactly matched with the rise in the ratio back to the bear flag support channel.

We can see a strong ratio rejection from past support, possible resistance confirmation? Need to wait and see. If the rejection confirms, there is a 77% chance the flag confirms, a 40% correction follows.

The correction in the ratio is in line with a collapse in the gold market of the past. It happens on every recession / economic downtrend. People need cash and they'll sell anything to get it.