Yes, I and many others expect a rally...a significant rally...in the 2nd half of this year. So this post is one to bookmark as we'll discuss the various points on the chart where we can expect resistance to emerge. (It's also a cheap reason to post this video again).
That song by Muse has long been an "anthem" here at TFMR. "Resistance" and "Uprising" were both BIG sounds back in 2010 and 2011 and they remain no less relevant today as the forces of encroaching tyranny have only grown stronger and more outlandish.
"Kill your prayers for love and peace. You'll wake The Thought Police."
So, with that as a backdrop, where might we find chart to resistance to the rally that is, most assuredly coming? (And, again, NOT just because the painted chart says so. The London gold is "Gone...For Good" and the eventual realization of this will spur the rally to eventual new highs and beyond.)
Let's start with gold. For a plethora reasons, gold will NOT be breaking down through The Double Bottom low of $1180. It will. instead, reverse course by later this month and then begin a slow-momentum build through the 2nd half of 2014. First and foremost, gold must cross these two red lines on this daily chart:
But we're just getting started, though, and if gold is indeed going to rally all the way to $2000 and beyond, we certainly can't expect just an endless series of UPticks. There will be stopping points along the way where "overboughtedness" will need to be worked off before the trend can continue higher. ("Resistance points, you seek. Searching for stopping points, you are." -- a little Yoda love for you.) On this weekly chart, quite a few lines emerge. The first major line of resistance will be at $1320. After that...well you can see where it's not going to be easy.
Turning to silver, as in gold I DO NOT expect new lows. After the complete and total washout of last June, price has yet to return to $18.20 and I don't think it will this time, either. Especially not with The Specs having already built a larger short position than at the bottom last year. So, if a turnaround is an eventuality, where will silver encounter resistance? On the daily chart below, you can once again see all of the lines we've been watching, namely $19.20, $20.20 and $20.60.
And the weekly chart holds a very important clue. Recall the effort expended earlier to keep silver below the main trendline that stretches back to the highs of 2011. Well look how close we are to finally wedging into the corner created by that line and the MAJOR SUPPORT of $18. Moving through this line and heading back toward $20 and then $22 will be your sign that the long, slow, arduous decline is finally over and a new BULL has begun. Breaking $22, then $26 and then $36 will be mileposts along the way to a full recovery and beyond.
Again, I urge you to bookmark this page and save it for future reference. The 2nd half of this year and then 2015 are going to be very interesting times to be alive. Prepare accordingly.