• 346 days Will The ECB Continue To Hike Rates?
  • 346 days Forbes: Aramco Remains Largest Company In The Middle East
  • 348 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 748 days Could Crypto Overtake Traditional Investment?
  • 753 days Americans Still Quitting Jobs At Record Pace
  • 755 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 758 days Is The Dollar Too Strong?
  • 758 days Big Tech Disappoints Investors on Earnings Calls
  • 759 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 761 days China Is Quietly Trying To Distance Itself From Russia
  • 761 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 765 days Crypto Investors Won Big In 2021
  • 765 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 766 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 768 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 769 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 772 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 773 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 773 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 775 days Are NFTs About To Take Over Gaming?
  1. Home
  2. Markets
  3. Other

Silver Peak Likely Only After Dow Crash and Major Bottom

Last year, I produced the following chart and commentary (italics) to show how the Dow could crash like it did in 1929:

Dow Jones Industrial Average Monthly and Weekly Charts Chart
Larger Image

Above, is a fractal comparison between the current period (1998 to 2015) and the 1920/30s, for the Dow (charts from tradingview.com). Follow the two patterns marked 1 to 5. I have also indicated where silver peaks and bottoms occurred, to show that both patterns exist in similar conditions. This means that there is a strong likelihood that the crash will occur.

If the Dow peak is in (at point 5), then it could free fall soon, much like the October 1929 crash. This could be the greatest Dow crash ever. Therefore, the greatest silver rally could be on its way (why?)

Here, I would like to add a little more.

Notice how the Dow peaks at point 3 (in both charts) came relatively close to a silver peak. Furthermore, notice how the Dow bottoms at point 4 (in both charts) came relatively close to a silver bottom. This shows that silver, and the Dow have been roughly moving together during those relevant periods (in the 20s &30s and the current pattern).

However, after the third silver peak shown (on both charts) there was a big divergence between silver and the Dow. For example, while the silver peaked in 2011, the continued to rally until 2015. See chart of the current pattern to illustrate the moving together and the eventual divergence, below:

Weekly Silver Chart
Chart form barchart.com - note the Dow is the blue chart and silver is the green & red one

The divergence is what should be expected, since silver and the Dow actually moves in opposition in the long-term (contrary to what many believe). This adds to the likelihood that the fractal in the first chart is valid.

So, what significance does this have for the silver price in the future? It will help to determine when silver is likely to peak during the coming silver rally. Based on the fractal analysis on the first chart (above), silver is only likely to peak some time after the next major Dow bottom.

Warm regards,

 


For more of this kind of analysis, you are welcome to subscribe to my premium service. I have also recently completed a Long-term Silver Fractal Analysis Report.

"And it shall come to pass, that whosoever shall call on the name of the Lord shall be saved"

 

Back to homepage

Leave a comment

Leave a comment