Gold is having a normal disturbance at the SMA 200 and associated resistance. What would make gold less normal (to an ongoing short-term rally) is a drop below support at 1735 and the SMA 50 (1722 and rising).
Silver in essence hit our target of 24.50 yesterday and so again, today’s reaction is normal. But now clear support at 22 (+/-) comes into play and I would guess that will be tested. Remember what a big deal we made of that when it was resistance? Well, now it’s the same thing as support. I’d want to see that hold, but there is also clear support at the area of the uptrending SMA 50 (20.80 to 21.10).
GDX (using instead of HUI because it shows the gap way down at 23). GDX is normal to an ongoing seasonal rally right now as it drops to a higher short-term low, testing the daily EMA 20. Also here lateral resistance (this chart not marked up) roughly coincides with the SMA 200 (29.51 and easing downward). Can that lower gap fill? Yes. Do I expect it to? No, not within an ongoing seasonal rally structure, anyway. But if the markets take a real liquidation event, it could (not will, but “could”) fill prior to a real bull phase.
Bottom Line
Everybody’s intact, but the disturbance has come about at the marker where it was advised that traders consider profit-taking (HUI/GDX 200 day average, with a consideration of silver @ 24.50). Watch silver. It’s been the leader of this rally and its support at the 22 (+/-) cluster will be important.
