There was technical damage done to the gold chart last week with the price trading below the 10dma, short term thats negative. Gold has support at the 20dma but the average has turned from up to down. If you are a short-term trader then you must watch this 20dma level. To scare of the bears, gold need to stay above 1400 but a break below 1380 will cause further selling probably down to next support at 50dma. All this being said from what I am reading there is tremendous demand in the physical market for both gold and silver and there are rumors that JPM or someone that big is the major seller at the behest of the Fed. The big Asian buyers are the ones that see the game the FED is playing and are buying the dips . The print and spend Jig will be up soon enough!
The Silver chart looks similar to the gold chart but is stronger on a technical basis. While gold is testing its 20dma Silver is firmly above it and though there is a slight turn down of the 20dma in silver not as pronounced as gold. Further more the sell off in Silver this time wasn't like the one in November. In November volume spiked 5x normal and this time around it wasn't even close to double. So in my opinion this was clearly profit taking. The long-term trend is in tact and I did some buying on the pull backs. Remember to sell small amounts as we go up and buy the dips.
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