Gold, Silver & HUI Big Pictures

Gold, silver and the HUI Gold Bugs index are viewed here by their big picture monthly charts. In NFTRH we use mainly daily and weekly charts of these along with individual miners to better gauge the shorter-term pictures, which will advise on the end of the correction better than these more cumbersome monthlies that are great for keeping perspective amid the shorter-term noise.

Our target for gold was 1940, established in April off a daily chart pattern. That target was blown through and as the monthly chart shows, a big picture Cup was formed as it made a higher high right around the time that the Buffett hype signaled the oncoming correction as we noted on August 17th:

Buffett Buys a Gold Stock!

“We have a new upside target on gold (w/ the long-standing 1940 in the books) and it’s way up there. But gold would logically need to do so some more grinding to make it happen, per work we’re doing in NFTRH on a lovely monthly chart pattern.”

Here is the monthly chart pattern I was writing about back in August. Don’t sweat the failed breakout. Gold has put its flag in the surface of the moon and after the healthy grind downward (otherwise known as the making of the Cup’s handle) the Cup should play out.

The question is time. Gold has been in correction since early-mid August but the monthly chart handle can drag on another month or more. But it is bullish and should bring opportunity for those who anticipated the correction.

gold

Silver, oh boy… silver. When gold’s nutty little bro made the crash breakdown below 14 I suspected a false breakdown, and that is what it turned out to be. But the resulting rally was an impulsive jail break that tore through our ‘reasonable’ target of 21.23, smashed through our ultimate target of 26-27.50, sucked ’em all in and then well, silver did what silver does; only it did it in the most dynamic fashion since the 2011 bubble blow off. But I believe this was a launch, not a blow off.

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We manage the correction each week in NFTRH and in interim updates at nftrh.com.

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