Gold and Silver – 11 May

Gold closed down on the day, but not until it bested yesterday’s high. Therefore technically speaking we still have not established a swing high yet and the chart is neutral. We have a lower low in place and need a confirmed lower high to establish a new short term downtrend. Gold is really holding up well and if you are not reading FOFOA, get off your butt and start. Freegold will explain why gold is holding up so well and why it is going dramatically higher. FOFOA is the source for everything Freegold. The next financial system meltdown will likely cause gold to up, not down like last time. There are buyer for every dip waiting in the wings trying to snap up the future global reserve asset.

Resistance remains 1520 with support at 1476 & 1462. Gold is setting up a consolidation type sideways pattern and has completely worked off over-bought status in the technical studies. RSI is dead neutral and stochastic is going sideways with a reading of 42. Stochastic is not much help during consolidating type action. It is best as a reversal indicator and when it embeds (3 days or more above or below 80 & 20 respectively). Support at 1450 is very stout and would be my worst case scenario if the swing low at 1462 gives way. At this point I believe today’s high will lock in the swing lower swing high. If it does, we want 1462 to hold which will turn the trend back to neutral.

Silver has a similar situation going as gold as far as the chart goes, but the volatility is off the chart. Silver is getting killed one day, then picking up a big bid the next day. Silver is very dangerous here IMO and the Evil Empire has drawn a line in the sand with silver and all commodities to a certain extent. The difference between gold and all the other commodities, including silver, is that gold is money and not a commodity. Gold is only a commodity when confidence in fiat currency is high. At the end of a fiat money’s life, gold sheds its commodity aspect and ascends to the one and only money that endures the millenia. Gold is acting like money now and will not succumb to dirty tricks like it did in the past. Until silver forms a solid bottom, I would stay with gold.

With that said, price found resistance right at the 45 day moving average then got whacked by the Evil Empire and shed $3 down to just above 35. So it appears tomorrow will confirm today’s high as a lower high with the lower low at 33.15 waiting for a re-test. Support is around 33.50. A breach of that low will likely set up a run run to the 200 day MA and possibly a complete 100% retrace of the move from the low at 26.38. This would be an incredible buying opportunity. Stay tuned.

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This entry was posted in Gold, Matrix Sentry TA, Silver, Technical Analysis. Bookmark the permalink.

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