Silver Price Forecast – False Breakout Could Trigger Sharp Decline – FX Empire

I say “possibly sharp” because price manipulators thrive in low volume environments encompassing Holidays – like Chinese New Year (February 12, 2021).

SILVER PRICE UPDATE

The spike in silver above $30.00 appears to have been a false breakout (possibly engineered). This sets the stage for a secondary breakdown, into mid-February. A bottom on or around Chinese New Year (February 12th) would present an excellent buying opportunity, in our opinion.

SILVER 4-HOUR CHART

Silver has been unable to recapture the $28.00 breakout level increasing the odds for a false breakout. Slipping below $26.00 could trigger more selling and a breakdown to $24.00. If $24.00 fails, we could see a trip back to support around $22.00.

GOLD PRICE UPDATE

Gold is getting dangerously close to the $1800 support level. The next 36-hours of trading are crucial. If prices break lower, I’d expect a bottom around February 12th, followed by a strong uptrend into May or June.

GOLD 4-HOUR CHART

Downward pressure is building after Monday’s failed breakout in gold and silver. If the breakdown in gold accelerates below $1800, expect a retest of the November $1767 low with a quick spike below $1750 possible. From a mid-February low, I’d expect a rally into May or June.

Our Gold Cycle Indicator is in maximum cycle bottoming (currently 42) and could reach a maximum bullish reading of zero in February. Precious metals would have to turn miraculously higher after Friday’s employment report to prevent a further breakdown.

AG Thorson is a registered CMT and expert in technical analysis. He posts daily updates to Premium Members. For more information, please visit here.

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