Silver is testing long-term support at $15/ounce. Breach is likely, with 13-week Twiggs Momentum peaking below zero, indicating continuation of the down-trend.
Gold is similarly testing primary support at $1140/ounce. 13-Week Twiggs Momentum also peaked below zero, suggesting continuation of the down-trend. Breach of support would offer a target of $1000*.
* Target calculation: 1200 – ( 1400 – 1200 ) = 1000
Stocks of major producers like Barrick Gold are also testing primary support. 13-week Twiggs Money Flow below zero indicates a primary down-trend.
The Gold Bugs Index, representing un-hedged gold stocks, has already departed. Breach of the band of primary support between 150 and 155 warns of a bear market for gold.