On the heels of another surge in gold and silver, today top Citi analyst Tom Fitzpatrick sent King World News two incredibly important charts which show that gold and silver are going to torture shorts as they continue historic advances. Below are the key gold and silver charts that all KWN readers around the world need to see.
Here is what Fitzpatrick had to say: Gold: The rally through the 200-day moving average opens the way for a move to $1,361. Beyond that, we believe a rally to $1,434 is in the cards.
The higher highs on gold and the rally through the 200-day moving average (not shown here) strongly suggests that a test of $1,361 – $1,365 is likely in the near-term. This is where the high from October 2013 and the 55-week moving average converge.
A break above there ($1,365) opens the way for higher levels which are listed below:
$1,434 – the August 2013 high and double bottom neckline
$1,491 – 200-week moving average
$1,686 – the double bottom target
Silver: The break above converged levels at $20.60 and the 200-day moving average ($21.04) is a bullish break. The triple bottom targets of $22.02 – $22.30 and the next level of resistance is at $23.08.
Silver has rallied through the horizontal levels and triple bottom neckline around $20.60 as well as the 200-day moving average.
Source King World News