PHYS and PSLV Update – 22 Mar

Gold closed at an all time high today at 1437. The intraday high of 1440.40 remains intact for now and is resistance. Support comes from the previous swing low yesterday at 1420. another strong layer of support lies at the Fibonacci 38.2% level near 1392. RSI is at a moderate level of 62 with room to run higher. MACD is setting up for a bullish cross. It appears gold has finally broken through the 1430 level and needs follow through tomorrow to generate more bullish interest for a move to 1500.Silver continues its monster move higher and closed essentially on the high of the day at a new high. Resistance is now the Bollinger band and today’s close at 37.33. Support comes in at the previous swing high of 36.41. Additional and very strong support lies below there at 34.31. RSI is back above 70 and technically suggests market is over-bought. But as can be seen during this power move in silver, RSI can get over-bought and stay there for a substantial period of time. Technical indicators are not serving well now because of the unprecedented state of the silver market. I am going to utilize another type chart, the Elder Impulse chart to help determine waning momentum that will come before a correction. See below.PHYS, the real physical bullion fund under-performed today and shed some of the premium present in the NAV. a new swing low is confirmed and establishes the new up trend, defined as higher high and a higher low. Resistance is 13.13, the all time high. Support is where the price closed today at 12.80. Further support exists between 12.40 and 12.47 where swing lows exist and the Fibonacci 38.2% level lies. RSI is only 57 and has a lot of room for up side price action before it becomes technically over-bought. Price is finding support on the lower line of the Andrew’s Pitchfork and can be expected to work up to the middle line where resistance will exist.PSLV, the real silver bullion fund, established on all time high and at one point was trading at a 23% premium to NAV! This is telling us what the real price of silver is and it is in excess of $43.5! Support is the previous all time high at 17.29 and resistance is today’s high of 18.17, along with the Bollinger band. RSI is technically over-bought but isn’t telling us a whole lot since it has spent considerable time above 70. Look below to see the Elder Impulse chart. Price has met up with the center median line on the Andrew’s Pitchfork and will likely use this line as support as price moves higher. The upper line of the pitchfork will serve as resistance to contain price.The elder Impulse chart can be used to establish entry and exit points based on momentum. The chart is showing a green bar and is signaling a green light for entry into long trades. This signal will remain in place as long as the slope of the 13 day EMA (magenta line) remains positive along with the slope of the MACD histogram. If either one signals waning momentum by taking on a negative slope, the bar will turn blue and signal exit from any trade. If both turn negative then the bar will turn red, signaling a short trade entry, but all short trades must be ignored if the 65 day EMA’s (Blue line) slope remains positive. So RSI and stochastic may not alert us of impending reversal before the Elder chart. Therefore I will supply a daily Elder chart to augment analysis in PSLV. Traders may want to lock in profits soon, investors will be served quite well sitting on their hands.

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This entry was posted in Elder Impulse System, Gold, PHYS, PSLV, Silver, Technical Analysis. Bookmark the permalink.

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