Happy 4th of July to all of our dedicated readers in banker-occupied America.
Just one chart for you. With my first target ($1335) from last week's post hit, I decided to sell. Frankly, this is a tough market to trade right now. A lot of conflicting signals from my charts. I'm still bullish, but the metals are so overbought presently, that I'm going to watch from the sidelines.
9 comments:
Good call. If PM is strong I think can try to buy back at 20DMA.
Hi ssg -
Do you mean 200 day or 20? At any rate, I agree, both are around $1290. I want to at least see a bounce off of the 20-day EMA, at around $1300 here. It's not a good long-term sign when, e.g. the RSI for silver hit a level that's only been touched 7 or 8 times in the last 20 years -- and the silver price hasn't even come close to making a year-to-date high yet! I have my eye on the $20.40 and $21.40 levels for silver (looking for a bounce or a break, respectively) to decide whether this rally will have legs. But I must say, if gold gets to $1375 and silver to $22, it will be tempting to short.
If gold fails here, without taking out the March high (i.e. a lower high), then I think the chart is going to look pretty dreadful.
I was referring to the DMA 20, if it is strong it should bounce off from there. Gold chart is indeed confusing. I think that is because if you look at the long term average, they are flat so this is a side way trading market.
Hi GM and other expert out there, what do you think is the impact of the new silver and gold fix method ?
We had an interesting draw-down during the Asian session. GM, I noticed over the weekend your three-line break had drawn a 4th bar. Will be interesting to see what Monday's close will be.
Hi ssg - I'm not the man to ask about that stuff. Look, there's a lot of stuff I'm damn good at--riding baby elephants, speed-eating lobsters, knitting assless chaps--of which TA is one. But understanding how markets work-- that has never been my cup of tea.
And Warren good catch - both 3-line breaks added 4th bars last Friday.Thinking about some OTM calls in GLD and SLV tomorrow. Gold bounced off the 50 day. Still above the 144-day too. No technical damage yet, other than the violence of the move.
Gold at $1286 is an interesting level to try
GM, fundamental does affect price. If there is fundamental backing, we can be more certain in the direction when we analyze charts.
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