Buyers came to rescue as the Dollar breached the June/July support line. This corresponded with gold attacking key resistance at $1220. The Dollar reversed, and Gold rolled over. Technically speaking, the dollar hasn’t declined far enough to support a cycle low. Today’s reversal was likely trend chasers buying support expecting a turnaround. I’m hesitant […]
Continue Reading →Gold (December contract) is coming into support between $1206 – $1200, currently at $1207. There is a convergence of short-term trendlines and retracement levels between $1198 – $1200. This area needs to hold tonight and tomorrow to make another attack on $1220. The shorts defended $1220 well today and don’t want to see this […]
Continue Reading →Miners are overreacting to the downside as gold is trading just 0.25% below yesterday’s close. GDX gapped higher at the open and prices are trading below yesterday’s lows, a bearish engulfing day is likely. I’d be surprised if this were the end of a counter-trend bounce for two reasons. First, I think the dollar […]
Continue Reading →The Dollar is dropping into a cycle low, and prices should slip a little further before bottoming. If correct, then metals and miners should extend their rallies before entering a multi-day correction. Gold ran into resistance at $1220; this is a key level. Prices are pulling back (currently at $1214). Above $1220 and short […]
Continue Reading →Miners held their gains after 11:00 AM and prices are near the highs of the days. It’s not the spirited recognition day I’ve been expecting, but it’s constructive nonetheless. Ideally, prices will maintain their momentum into the close and set up another rally tomorrow.
Continue Reading →Miners held up well, relatively speaking, as gold declined in May and June. In July, psychology shifted, and miners began overreacting to the downside. For example, gold declined just 0.75% last Thursday, but miners finished 3%+ lower. To support a meaningful bottom, miners need to begin overreacting to the upside. We see a little […]
Continue Reading →The pattern following the parabolic 2011 top in silver is similar to what we currently see in Bitcoin. After a parabolic top, there is an initial crash, then a long sideways consolidation before a secondary collapse. -SILVER POST BUBBLE COLLAPSE- Notice how silver bounced off the $26.00 support several times. Each post-bubble rebound […]
Continue Reading →Prices have held up, and I took initial positions in JNUG and USLV. Bought JNUG at $14.77 with an initial stop at $13.85. Bought USLV at $10.42 with an initial stop at $9.85. Prices didn’t drop deep enough to trigger an official buy signal, so the color codes haven’t changed.
Continue Reading →Miners continue to look vulnerable, and GDX will likely close below the 20-day EMA. Metals are holding up a little better, but the action isn’t encouraging. To err on the side of caution, I’m taking profit on 25% on my USLV position. -USLV- I’m exiting 25% of my position at $11.86.
Continue Reading →Metals and Miners showed signs of topping after Friday’s employment report. Weekly dollar prices spiked down to the 200-week MA and reversed. If the dollar finally bottomed, we should see a 4-8 week recovery. Metals and Miners should soften as the dollar bounces. The dollar broke key technical support during the 7-Month decline. Consequently, […]
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