Massive Short Squeeze In Gold And Silver Prices?

London (Oct 13)  The gold market is trading last at $1,211.50, up about 17.70/17.80. The average price is $1,194. The market trading at the high of today at $1,214 means that it basically broke out above the sell 1 (S1) level of supply or resistance of $1,204 and completed the 28.3% Fibonacci retracement at $1,214 as the first target. If the market is able to close above $1,204 for the day, it would activate the breakout above the sell 2 (S2) level, which would represent that this resistance or supply zone would then become the support for the next level in price. As the market moves up, these levels of resistance would become support for the next price fractal, which points to the 38.2% Fibonacci retracement of $1,243.80.

If you've missed the move here that we've been recommending to add to your long positions during the buy 1 (B1) and buy 2 (B2) corrections into the demand levels, you should wait until the market adjusts again to these levels even if it's at a higher price. The market is in a breakout and we'll see where we close for confirmation of the breakout.

Silver

Silver traded last at $14.51, up about 1,480/90. The average price is $14.34. The market has penetrated the targets of S1 of $14.44 and met the S2 target of $14.54. The market has completed the reversion to the mean from the average price of $14.34 all the way up to $14.54. If silver closes above $14.54, it would show that the market is breaking out of this pattern, and this resistance, which is now trading below the market, would become the support for the next price fractal. A close above $14.54 puts into play as the target the 28.6% Fibonacci retracement of $14.85 all the way up to Fibonacci trend line resistance that points to about $15.04

SeekingAlpha