GLD and SLV – 14 Dec

The Elder Impulse chart for GLD is painting a green bar, indicating a long position since price is above the 65 day exponential moving average (magenta MACD > 0). Chart support is at the previous swing low at 133.95, with resistance at the previous swing high of 139.54. The 18 day MA and the 45 day MA are providing additional support at 135 and 134 respectively. The Bollinger bands are starting to contract and indicates that volatility is declining, a prelude to a breakout. Price action can be best described as sideways with an upward bias. A buy here could be interesting, with a stop just below 133.95. I am looking at the Mar 140 call.

SLV is a little bit dicier. It also is painting a green bar, indicating a long entry. Support is at the previous swing low at 27.34 and resistance at the all time high of 30.0. SLV is leaving gaps, which I hate. The gap around 26 is still unfilled, along with another gap from last friday between 28 and 28.50. I wanted to see the gap from friday fill and enter a Apr 30 call position around 28.0. We’ll see. The Bollinger bands are also contracting and telling that a break is coming soon, one way or another. The trend is your friend, so I am looking for higher. The 18 day moving average appears to be the magic line in the sand where support is holding and is currently 27.64 and climbing to the gap. I will enter the call position if price drops into the gap.

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