Weekly Review 5/17 - Gold & Silver short term targets.
The next target levels for these asset classes. As we approach $50 silver, it will be the talk of the town. Your barber will be a part time broker. You know what that means.
Don’t marry your investments.
Hopefully, you’ve found a stake in this gold and silver run. While is appropriate to allocate a portion to the physical metals and HODL for insurance sake, its also important to accept the generosity of the short term market when it finally breaks your way.
Let’s check the progress of short term targets from the 4/5 article.
Gold (bullish)
Profit targets are likely near $2700. Nothing to do but ride, for now. Will the market give us a swing back to a MA? Perhaps is on the 30-50W (purple line). I plan to re-balance at $2700.
Gold Miners (bullish)
Silver (Bullish)
Same setup. I plan to re-balance above $37.50. Longer term structure could take the price to $45-50. Use dollar cost averaging to withdraw positions.
Silver Miners (Bullish)
The previous peak at $50 happened at a point where silver was only $29 or so. SIL is relatively affordable, but some of the depreciation could be seen as dilution. Keep in mind the miners will likely stay in relative directional lockstep with the metal. We may not get much of a pullback in these silver companies.
Conclusion
Thus far there has been less to get excited about with the miners than with the metals themselves. They have some catching up to do and I expect they will more than exceed in that department. Freeing cash a key swing trade levels may be just the ticket to accumulating some mining stocks farther into the bull market when they present a much more favorable risk adjusted investment. Be patient, its still early.