Silver Showing Relative Strength Leading into Next Daily Cycle

Key Takeaways

• Gold and silver daily cycle lows are expected to form between 1 and 9 June, presenting a potential dollar-cost-average entry point for long-term stackers.
• Silver is currently showing relative strength, maintaining higher highs and higher lows above its previous daily cycle low, while gold has put in a lower low.
• With the Gold to Silver Ratio sitting above 80, well above historical averages, the upcoming cycle low represents a historically favourable accumulation window.

With gold and silver’s upcoming daily cycle lows expected to form between 1 and 9 June, and the Gold to Silver Ratio sitting at approximately 88, another dollar-cost-average opportunity is on the horizon for long-term stackers.

What is noteworthy, however, is the technical structure that has taken shape over the current daily cycle.

Silver has structure currently intact with higher highs and higher lows, sitting above the previous daily cycle low, while gold has put in a lower low, below the previous daily cycle low. While these assets tend to move synchronously, silver’s relative strength in the current setup cannot be ignored.

While a decline into the daily cycle low timeframe is reasonable to expect, the extent of this decline will provide investors with clues around market strength.

A sideways consolidation into early June would provide a strong setup for upside in the short term, while a stronger decline sets up for a smaller upside move near term.

In either scenario, a daily cycle low with the Gold to Silver Ratio sitting above 80, well above historical averages, provides the astute investor with a valuable dollar-cost-average entry point to add to their long-term stack. That setup is approaching early June.

This article is general information only and does not constitute financial advice. Past performance is not indicative of future results. Always conduct your own research or consult a licensed financial adviser before making investment decisions.