A Slow Start To The Week Could End With Excitement In The Gold & Silver Market

by SilverDoctors:

SD Outlook: It may seem like a boring few days, but that could all change by the end of the week…

There are some important events to consider this week.

Or should I say, lack of events.

U.S. Markets are closed today for what used to be called Washington’s Birthday but is now called President’s Day.

There is some light trading – for example, gold & silver can be traded up until 12:00 p.m. EST today, but there will be light volume in a thinly traded market.

Markets in China are still closed through Wednesday as the Lunar New Year celebrations continue.

So it seems like we will either have three days of boring, or three days of smash in front of us.

To make matters worse, we have a barrage of Fed Heads to round out the week:

Notice the morning, afternoon, and then late afternoon speeches on Friday, you know, just in case.

Don’t be surprised if this week gets off to a slow start, but come Friday, we see some fireworks.

The gold to silver ratio climbed again last week:

Once again, we are completely over 80: Open, High, Low and last price are all telling us that silver is severely undervalued right now.

It looks like for the time being, the cartel will succeed in smashing silver back down below its 50-day moving average:

It would be nice to see the open interest come down even more over the next few days, but for now, e’ll have to see if the short-term lows put in two Fridays ago holds.

If that low does not hold, that’s very bearish and will signal a bearish trend change of two lower-highs and two lower-lows, but it would give us a great starting point for the next rally.

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