Precious metals face deep corrective technical pain
The speakers argued that while the long-term fundamental case for gold and silver remains intact, the current technical charts show a deeper and more frustrating correction than initially anticipated.
The argument
The guest highlighted that silver (tracked via SLV) has been capped by a persistent downtrend line since its January peak, and gold stocks have seen bullish percentages skidding near single digits for weeks. Despite favorable cooler CPI data, the metals have failed to sustain bounces, indicating near-term technical weakness.
The thesis, stress-tested
✓ What validates it
- ✓SLV breaking and holding above its downtrend line, specifically clearing the $60 level (equivalent to $28.70 spot silver)
- ✓Gold stock bullish percentages rising out of single-digit territory to trigger buy signals
▸ Risks discussed
- ▸Technical indicators like the 'death cross' and trading below the 50 and 200-day moving averages suggest continued near-term downside
- ▸Extreme linearity of the downward move testing investor conviction
Hear it yourself
"So, real quick, just because it was on my list, John, you you mentioned, worse talking the other day, and then we got, the latest CPI data, which was, a bit cooler than folks thought."
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