Yesterday we reviewed a potential halt (and pullback) area that GDX has risen toward. Today, let’s take another look at the daily charts of gold and silver (futures).
Gold hit the resistance target yesterday, inched above and eased back below it today. That target is 1920. If this holds and the PM complex gets a healthy pullback, key support for gold is 1820 down to the SMA 50 (1795 and rising sharply).
We have been noting silver in a short-term rollover posture for the last couple of weeks. It has not rolled over (yet, at least) but has found resistance at the March-April 2022 lows, much like gold. 22.57 was the important area to exceed on the way up. Silver busted through that in a positive sign for an extended rally. But support could be tested from 22.50 to 22. Also, don’t discount the possibility of an extreme pullback to the support coinciding with the SMA 200 (21.20). But for now the objective is 22-22.50 if a pullback develops.
As with the GDX 29 area, I’d see pullbacks to the above noted levels in the metals as a buying opportunity for those who’ve been awaiting one.