Gold and Silver Update – 19 Apr

Gold is pushing through the 1500 level in the pre-market, as I type reading 1502. So resistance is being set higher and now is the Bollinger band. Support remains at the previous swing high of 1476, with additional support at the previous swing low at 1444. RSI is now above 70 and is indicating an over-bought condition. Stochastic is now embedded (3 days above 80) and indicates accelerating momentum to the upside, all pullbacks should be bought. I have been all in with gold and will continue to be all in.

Silver continues its monster move and has played me for a sucker. I sold on the last swing high in an attempt to lock in profits. I converted most of the cash over to gold which was less over-bought. Oops! Look at RSI! This indicator has become meaningless. In the pre-market silver has blasted through 44. Price continues outside of the Bollinger band and I will not buy in this condition. That in itself will not prevent silver from going higher. It really drives home the fact that the risk in precious metals is gaming yourself out of the market. Live and learn. Stochastic is embedded and suggests all pullbacks should be bought. Support similar to gold, where the previous swing high and low are the support levels. I will BFTD (buy the fucking dip).

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