The overnight hit took gold to a test of its recent lows and silver to what could be interpreted as a long term support point.
Gold was driven down hard to around 1340, which qualifies as a test of the April low.
Silver, in dropping to near 21 (not shown on this chart) tickled the top of what could be interpreted as the beginning of a long-term support area.
HUI, in finally having satisfied the weekly bear flag breakdown then reversed upward with both metals. To me, it’s a bullish sign and once again I am bringing back in the favored quality items.
This has been my method, to keep poking and trying to be ready for an eventual bottom. Today represents another attempt, as it comes with some nice reversal signs.
Other bearish TA to this point still applies, but again bullish reversals off of violent down spikes are what we tend to look for for lasting bounce, rally or bull market beginnings. So far so good. So I am putting some capital to work again.
