Prices for precious metals sometimes move in the same direction as equities markets, but other times in opposite directions. So, normally they’re not a good guide to follow. However, I believe God is revealing relationships between them that can help us during two upcoming drops in equities.
Several weeks ago, I believe God warned me about the price of silver moving higher while equities were dropping. Specifically, the warning was to wait for equities to finish dropping before opening a short position on silver. Since then, equities have not dropped, so the fulfillment is still in the future.
Then yesterday, I received a dream showing two upcoming drops in equities. So, when do silver and equities move inversely, during the first equities drop or the second? I believe the warning referred to the second drop, which is expected to be the larger drop, because the smaller drop appears to be very close and silver now appears to be losing upward momentum, preparing to give back some of the gains from the past eight trading days.
The past couple of days, I started sensing a temporary drop in silver, so yesterday I closed my long position, but I believe this is just a temporary pause as prices are eventually moving higher.
Over the past several weeks, I have received multiple confirmations of a big move up in silver, as shared in my post two days ago. So, I’m expecting to see that soon, but I think we might see a small drop first. Combining the drop in silver with the upcoming drop in equities, we might see both dropping at the same time during the first drop in equities. If so, then the inverse movement I was warned about would happen during the second equities drop.
If we see them both moving together during the first drop in equities, then the earliest time to open a silver long position would be after equities finish the first drop, which I am forecasting to be between 2380 and 2400, and the latest time to open a silver long position would be after equities fully recover from the first drop, returning back to where it started, because soon afterwards comes a much bigger drop in equities with a simultaneous big rise in silver. On the other hand, if silver and equities don’t move together during the first drop, then my assumptions are wrong.
Finding the Bottom:
If silver and equities move together on the first drop, then equities can help us find the bottom for silver. I am expecting the S&P to hit bottom in the 2380 to 2400 range, so we might see silver reach the bottom at the same time.
Silver has been in a bearish pattern for the past three months, but the rally over the past eight days suggests it’s finding the bottom and preparing to move up. If we see a temporary drop, the most likely bottom is the lower support level (red horizontal line, S2), which is currently at $15.35, as shown in the graph below. It dropped below that level briefly on July 10, but was not able to stay there long. So, we have equities as a guide and the support level price to confirm it.
Long Range Forecast:
Looking at silver from a longer term perspective, 2013-2017, the weekly chart below shows the price has been forming a bottom. For the first time since 2013, the 50-day moving average (purple line) crossed above the 200-day moving average (green line), which confirms a shift from a bearish to bullish market. The 100-day moving average (orange line) has not yet crossed above the 200-day, but it is getting close and should get there before the end of this year. These trends confirm prices will soon be moving higher.
As always, this information is provided only as a starting point for prayerful consideration and is not a recommendation for investing.
Author: James Bailey
James Bailey is a blogger, business owner, husband and father of two grown children. In 1982, he surrendered his life to the Lord Jesus Christ. In 2012, he founded Z3news.com to broadcast the message of salvation by reporting end time news before it happens.
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