PHYS and PSLV – 4 Apr

 

The capping operation in gold is going right on schedule, the Banksters have decided we will all go to Hell rather than allow gold to close above 1440. This is fine by me because when they finally can hold it no longer price will explode higher in big jumps. Nothing has changed with PHYS, the real bullion fund. Resistance is still 12.66 and support is 12.42. Price is at the top of the lower channel that has contained price action for the last 2 months.If we breakout here we will be into the upper horizontal channel. RSI is tracking down the neutral line while stochastic is climbing from the over-sold area.

 

Silver continues to kick ass and refuses to collapse. PSLV closed near the high of the day right at resistance of 17.85. Support is now the swing low made last Friday at 17.29. RSI is hanging around over-bought at 70, nothing new there. Stochastic has crossed back above 80 and is technically over-bought, nothing new there. MACD is not offering anything of value. It is times like this when the Elder Impulse chart really becomes useful. The chart identifies changes in momentum and gives signals as to when it is advantageous to enter and exit trades. The chart painted a green bar, indicating entry for long trades. To render this signal, both the 13 day exponential moving average and the MACD histogram bar must be greater than the day before. In this case the histogram bar is barely greater, almost indistinguishable from Friday’s. So the bar is “barely” green. If the histogram bar is smaller tomorrow, the price bar will again revert to blue. The all time high awaits at 18.20. the premium to NAV is now 20%. Why do you think people are willing to pay a 20% premium to own the silver in PSLV. Because they wish to own metal and not paper. The paper price is too low by 20% I would bet.

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