As if it were as easy as all that the market looks like it is trying to find support after we noted its state in pre-market. It is not as easy as all that, so it continues to bear watching.
I added a few items back and we’ll see how that turns out. I think it is important to stress that if there is a reversal here it is a bounce only, as the two previous ‘V’ bounces ultimately were before renewed downside came about.
As for the precious metals, silver made the break above 17.40 and now has an objective of 19. At 17.74, silver is at the first minor resistance point noted on page 10 of NFTRH 325 (daily chart).
Gold’s pattern measures to near 1340 as noted this morning. It too is at a resistance level.
HUI’s target is 210, as noted this morning. Currently 200.
Traders who played the bounce can think about profit taking at or below resistance levels. But on a bigger picture we are turning the bounce into an intermediate trend. As with the GDX NFTRH+ update on Wednesday, downside reactions would be buying opportunities.
It has been all too long since we have been able to manage the precious metals from a healthy ‘buy the pullbacks’ perspective. I think 2015 is seeing a change in character, which could also include a ‘sell the rallies’ mirror opposite in stock markets.
More to come in NFTRH 326. Have a great weekend!