Equities Could Provide Helpful Guide to Silver Prices

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.

Click on the chart to see a larger version.

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.

Click on the chart to see a larger version.

As always, this information is provided only as a starting point for prayerful consideration and is not a recommendation for investing.

James Bailey

Author: James Bailey

James Bailey is an author, business owner, husband and father of two children. His vision is to broadcast the good news of Jesus Christ through blog sites and other media outlets.

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Marilee Alm
Marilee Alm
Member
July 20, 2017 7:18 am

Off topic: someone put this on my FB. Sounds very close to what we will experience during the tribulation:
https://www.youtube.com/watch?v=Z1YFOcW-AHc
This is what is happening right now in North Korea Please Share so everyone knows !

It is a sweet girl telling of her horrible mind controlled life there.

Eddie
Eddie
Member
July 20, 2017 6:27 pm

Thank you Marilee. Father have mercy on the North Korean people.

John Smith
John Smith
Member
July 20, 2017 11:30 pm

James:

Sounds good. I’ve been riding short silver, gold, and platinum for last 4-5 weeks, and have been riding out this last couple of week bounce, which I think its just a retracement in the move down for PMs. Silver can’t seem go rise to the 50 ma or 100 ma on the daily, so the bounce may be coming to an end, although we could get a few more days of bounce for it to kiss the 50. I see a very clear H&S pattern on both gold/silver on the daily charts, so I guess we’ll find out soon.

I think the next 2-4 weeks, we could get a flush out drop in PMs that will take us a lot lower (14.9 to 13.75 if fast) before moving higher. I typically look

I typically look for PMs to drop in a very stable equity market, and stocks just look like they’re in cruise control for probably a month. As indicated, I’m looking for that 8/21 summer top.

Cheers.

David
David
Member
July 21, 2017 9:04 pm

I had a dream last night. I was backing down a hill in my Silver car in reverse and I hit the brakes but they did not work and the Silver car kept going down in reverse. My first thought was Silver about to reverse and the brakes are not going to stop it, the brakes being the last support at 15.35-15.49.
Here a link is pretty accurate.
Midday update for Silver 21-07-2017 2017-07-21 10:36:24 GMT (Economies.com)

Midday update for Silver 21-07-2017
Silver price keeps crawling upwards to approach from 16.56 level, being aware that it is important to monitor the price behavior when reaching this level, due to having negative factors that might make the breaching mission harded followed by heading to achieve more positive targets, these factors represented by the pressure formed by the EMA50 besides stochastic negativity.

Until now, the bullish trend will remain suggested for the rest of the day as long as 15.49 level remains intact.

Expected trading range for today is between 16.20 support and 16.60 resistance.

Expected trend for today: Bullish

John Smith
John Smith
Member
July 22, 2017 12:09 pm

Thanks for the info David. One other interesting tid-bit I’ve learned about gold/silver trading is that many times they’ll ramp it up going into the weekend, and then later on Sunday AH trading is where many larger drops begin. Maybe people are buying security in case an event happens over the weekend, but then liquidate when nothing happens.

John Smith
John Smith
Member
July 20, 2017 11:42 pm

James: By the way, I like the weekly chart……..

thorsten-r
thorsten-r
Member
July 21, 2017 3:13 am

what i am miss here is the COT position of the commericials.
my take on prices is they are manipulated and best forecast is based on the COT position.
and that is very bullish for gold & silver right now.
this was also the most reliable indicator in the past and gave also caution a couple of weeks ago as the commercials were massive short.

Matt NZ
Member
July 20, 2017 2:14 pm

Thanks so much for these updates James. They are greatly appreciated.

Phil - Sydney
Phil - Sydney
Member
July 20, 2017 6:29 am

Thanks again James

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