PHYS and PSLV – 29 APR

The real gold bullion fund had a stellar day and closed at another all time high of 13.83, just of the high around 13.90. That high is now resistance with support 13.54. everything on this chart looks good and ripe for a 14 handle. RSI is now above 70 and technically in over-bought territory. Next week will likely show a push higher to challenge 14 and some consolidation, hopefully setting up a higher low and confirmation of a new short term up trend.

The longer term chart shows the impressive breakout from 13 and the re-test of that area as support. Support confirmed. The shares are trading at a 4.24% premium to net asset value (NAV) and represent a bargain for real physical gold held in an allocated account and in storage at the royal Canadian Mint.

The real silver bullion fund is still in correction mode as the premium to NAV dropped to 16.46%. Resistance remains the all time high of 23 and support is at the recent swing low 19.80. the median line and the lower line of the Andrew’s Pitchfork continue to bracket price providing target levels for resistance and support. The 20 day moving average also continues to support all pullbacks. Price is now firmly back into the Bollinger bands and the RSI is now fallen to 66, away from over-bought status. As long as the recent swing low holds, the up trend remains intact. A buying opportunity is presenting itself with a further retrace of price where a buy can be placed just above support at 19.80 and stop just below. I was hoping for a pullback all the way to the green trend line or the Fibonacci 38.2% retrace line at 18.61. It is looking more and more like that is wishful thinking.

The Elder Impulse chart painted another blue bar and is still neutral with regards to entry into a long trade. It looks like recent pullbacks have just penetrated the 13 day EMA before reversing higher. Currently the 13 day EMA is a dollar lower at 20.71. another idea for entry might be to place the buy just below this level with a stop just below the 19.80 swing low. The risk should be less than a dollar or under 5%.

This entry was posted in Gold, PHYS, PSLV, Silver. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s