And Good News For Silver Investors Too
(Click on image to enlarge)
As for gold, so it is for silver and a wonderful example of all the elements of volume price analysis in action with the industrial metal now moving towards the $20 per ounce region which is one I have been highlighting for some time. Now with the pull-through effect of gold, it is a level that is likely to be breached sooner rather than later as we trade at $19.35 per ounce at the time of writing. So what are the lessons?
First, we have yesterday’s excellent move of a wide spread up candle on excellent volume with the two in agreement. Second, we have a rising price and rising volume and once again confirming Wyckoff’s laws confirming this is a genuine move. Third, we have a strong move away from a congestion period which has been in progress for some time. As a result here it is a case of Wyckoff’s second law of cause and effect – the longer the cause then the greater the effect and so we can expect to see a strong trend develop. Finally, as we can see on the chart, silver is now approaching a low volume node on the volume point of control histogram and as such we can expect to see the metal move through here with relative ease. So whether you are a gold or silver investor, it’s all good news for the longer term.
Meantime the levels to watch are as follows: $19.74, $20.35 & $20.77.
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