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SILVER and SOYBEANS

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Poor man’s gold might be setting up for a strong performance in the metal complex. SILVER/GOLD ratio is reversing from a historical support area. This level acted as a medium/long-term turning point for the ratio in 1997, 2003 and in 2008. Not only the relative performance of Silver is showing strength but also the price chart of Silver forming a possible base formation. Silver has been outperforming another precious metal that has industrial use; platinum. SILVER/PLATINUM ratio is on the rise with the latest chart development suggestion even more to come. In the metals, silver can be a winner.

SILVER VS GOLD WEEKLY SCALE RATIO

SILVER VS GOLD WEEKLY SCALE RATIO

SILVER VS PLATINUM WEEKLY SCALE RATIO

SILVER VS PLATINUM WEEKLY SCALE RATIO

Over the past year, Silver possibly formed a head and shoulder base with a neckline at 16.35 levels. Breakout above 16.35 will clear multi-year downward trend lines and also the year-long horizontal resistance. Weekly price closed at 16.21 levels.

SILVER

Another long-term opportunity might be developing on Soybeans price chart. Over the past few weeks, Soybeans reversed from an important inflection point. Two long-term trend lines overlapped around 850 levels. Last week’s strong weekly price bar suggests possible strength for the following weeks. Resistance area on the first month continuation chart is around 1070.

WEEKLY SCALE PRICE CHART

WEEKLY SCALE PRICE CHART

PLATINUM

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PLATINUM

Commodities markets have performed poorly compared with stocks over the past 3 years. From industrial metals to agricultural commodities deflationary pressures are being felt worldwide.

Platinum prices which is almost 50% lower than 2008 historical high levels, is now testing a 15 year-long trend support. Usually prices should rebound sharply from such historical level. However, over the past four months the performance has been lackluster. Breakdown below 1,170 levels will have long-term implications and will be negative for Platinum prices. It is important to note that the next major long-term support is around 735 levels. Next few months will be extremely important for the medium/long-term trend.

PLATINUM

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After a long consolidation period, Platinum might be preparing for a strong breakout. Since the beginning of 2014, Platinum price has been forming higher highs and a horizontal resistance. Strong horizontal resistance area remain between 1,470 and 1,490. Breakout above the resistance area can push prices higher towards 1,550-1,600 range.

PLATINUM

Another interesting chart development can be seen on Platinum Group Metals – an equity listed in NYSE. Stock has formed a perfect symmetrical triangle. Strength in Platinum can result in a breakout on this long-term chart pattern. In the following weeks I will keep an eye on precious metals and especially on Platinum.

PLATINUM GROUP METALS