Well, I am mercifully finished with my MA > NY > tons of physical exertion > MA trip and in a moment of clarity decided to just give my daughter my car for the next 2 weeks so she can get herself to a summer music program 3 hours north in VT. As for the moving stuff in NYC, June 1 is a massive moving day and not a single Task Rabbit was available to do the job.
I have been pretty well out of touch with the markets, but I see that it has done much as expected with a short-term pullback likelihood (ref. NFTRH 707) but still intact bear market bounce potential.
Getting focused, let’s look at silver since it has been featured in the last few NFTRH editions. We have noted its clearly (contrary) positive CoT structure, its downtrend and clear resistance at 22. Yesterday it poked through and it would be positive if it can make a weekly close above the EMA 20 (22.15).
The reminder is that we are looking for a bounce, possibly a hard one within the downtrend channel. Nothing more at this time, technically speaking, because the technicals do not support more. But if silver rallies, so too should the precious metals miners* and if silver rallies and out performs gold it should be a tailwind for the wider commodity/resources sectors.
The resistance at 22 was identified as a key level to re-take to paint the May downside climax as a false breakdown below 22 (+/-) but within the channel. So far, silver is still on that job.
* Side note: I’ll continue to favor royalty plays, fundamentally, due to the fact that rising energy costs do not materially or directly affect them.
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xau/xag – topping or bull flag in your opinion?
Sorry, but I don’t know what XAG is. Can you advise?
GSR is the right name, sorry. XAG – currency symbol for silver.
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