Technical analysis bullish on Gold and Silver

Technical analysis is showing extremely bullish indicators for Gold and Silver. The MACD is in oversold territory, and the 200 period moving average appears to indicate gold is touching support levels. Gold has been above the 200 period moving average since 2019, and technical analysts are optimistic about the signals they’re seeing right now. This indicates short term a move upwards, although how high is anyone’s guess. Some fund managers believe it can surpass $2,000 as early as Q1 ’21.

The story is similar for Silver as well. There is a slightly greater distance away from the 200 period moving average, but there does appear to be support at the $24 level (red line).

Gold and Silver trading strategies utilizing technical analysis would conclude this is a wonderfully bullish opportunity. A good way to do this is to buy mining stocks. With futures the value is 100% dependent on the metal price, but with a mining stocks the value increases as the company explores further. In many cases this results in expanding the deposit and making the in-situ value, and consequently the market value, worth substantially more.

A great way to play this is by buying stock in a company that has phenomenal geology, and all the right attributes needed to maximize the exploration potential. One such stock is Tocvan Ventures (CSE:TOC), with the Pilar property. The company has initiated a drill program, and with drill results such as these:

• 3g/t Au over 1.5m
• 27g/t Au over 3m
• 47g/t Au & 53.4g/t Ag over 16m
• 64g/t Au over 13m
• 6g/t Au & 37.8g/t Ag over 9m

The prospect of bonanza grade gold is very very real. Tocvan is currently undergoing a drill program on Pilar, and the results have us all very excited. If the past drill results are any indication, this low-sulphide epithermal deposit may fast track to production and deliver strong returns to traders and investors.