The precious metals reaction is upon us. We were prepared and I hope players adjusted in whatever way works best, even if just mentally. We will work on support levels…
HUI Daily Technicals
HUI got above the 50 day averages and changed the daily trend by gapping up January. It then made a consolidation handle, which found support at the EMA 50 in early February. It then became gappy as aggressive buyers chased it up to its over bought state (as of yesterday).
GLD is on a strong bull signal, but getting over bought as it heads toward the equivalent of gold 1340, our short term target. Over bought is seen in distance from EMA’s 10 and 20. A pullback would be normal.
As we did with SLW last week earlier this week, today let's take a look at a speculative leader to the precious metals rally and plot a near term upside…
The ‘bounce’ has been more powerful than I thought it might, bringing the prospect of the next up phase – indeed a potential melt up phase – into the picture. But one leader has been negatively diverging the rally of the last week…
Today there is some turbulence. Good, an extended rally scenario would not want to see the sector fly up to excessively over bought levels all in one big gulp. HUI…
A low priority update on Silver Wheaton's daily technical status. This post is not meant to call anyone to any sort of action. It is just noting some data points…
GLD climbed above lateral resistance yesterday and moved above the trend line. It is on a bull signal by all data points. The pattern measures to 129 assuming the green line holds as support.
Stocks, precious metals and the general commodity sector are all rising today. The Dow and S&P 500 are right at ‘bounce’ resistance now but a negative for the bear view is that leaders like the NDX and SOX are above their 50 day moving averages.
Yesterday’s bull fest seems to have quickly brought on thoughts of ‘here we go again’ if anecdotal evidence is any guide (referencing people’s comments at bearish sites like Slope of Hope among others). There were also a couple of emails from NFTRH subscribers putting forth thoughts on a near term bullish case for US stocks. One of those emails is copied here at the author’s suggestion. I will answer as best I can, point by point…
Franco Nevada (FNV) is described as one of the best (if not the best) run precious metals royalty plays by people who seem to know their stuff, fundamentally. What I…
GLD is on a weak bull signal. It must get above the downtrend line or risk fading to neutral or bearish.
The stock market is taking the bounce right at its do-or-die point, which was to maintain the December lows. Gold is taking the counter to that trade and getting clobbered.
