The break above the 50 period MA's on the HUI 60 min. chart with a corresponding break below in DUST, is the first positive technical inkling for a potential bounce…
HUI continues below the 50 day MA’s but has been sneaky in its refusal to break down despite the pressure on the metals over the last few days.
GLD is on a daily bear signal below the MA 50’s and MACD going red. At a potential S/T support area.
Last week we noted that SLV was breaking a trend line. Among that and other bearish indicators, the Silver-Gold ratio had been holding out as a lonely positive indicator for…
SLV could be forming a Hammer candle, which is normally a reversal, which would paint the trend line break as a whipsaw prior to reversal.
Part of my job is to tell you what the charts say and this chart says that SLV is breaking down from a trend line and its 2x inverse, ZSL, is breaking up from one. One is below its 50 day moving averages and the other, above.
With the precious metals strong in pre-market, it is helpful to take a current snapshot of the daily technical situation for perspective.
Putting aside the pre-market drop in precious metals, we’ll review the charts as they stood at yesterday’s close.
GLD is neutral, with a bull signal to be determined by MACD going green and the price remaining at or above the 50 day MA’s.
The Key ETF daily charts remain on the same signals as the last update. Precious metals are neutral, US and Euro stock markets are bullish but over bought and commodities and emerging markets are neutral but in potential breakdown mode.
We are in a typical pre-FOMC meat grinder where the precious metals are concerned. I wanted to pass along a few pictures of the current situation, beginning with the important silver-gold ratio (SGR) and HUI-Gold ratio (HGR).
GLD is dealing with the SMA 50 after breaking the trend line and triggering MACD. Neutral, pending a climb and hold above the SMA 50 and MACD 0+ (green).
GLD is MACD trigger up, on a trend line breakout and at the SMA 50. Balance of data points is a neutral signal. Bull signal would come with a couple closes above the SMA 50 and MACD rising to 0+.
A quick update on the status of the weekly view of HUI and its projected ‘W’ or ‘IHS’ bottom as noted in this week’s letter.
But first, to review the daily situation, HUI made its first close above the resistance at 230 (as noted in an update last week by a daily chart). The next important task is to take out the 50 day moving averages, which are currently 234.55 (EMA) and 241.50 (SMA).
