Gold and Silver – 27 May

Gold is wrestling with resistance at 1525. If this level gives way to the upside, look for a run to the Bollinger band around 1537. A break away puts 1575 back in sight as the primary target. Minor support exists at the 18 day moving average, currently at 1506. Further and stronger support is coming from the 45 day moving average current around 1486. Then the strongest support of all coming in at 1470. MACD has leveled off and RSI is turning over to neutral territory. Slow stochastic is in over-bought territory. Stochastic tends to get over-bought and over-sold early and should not be used on its own to tell you anything. I like embedded stochastic as an indicator, and when it leaves embedded status (3 days above or below 80 and 20 respectively.) So at this point the technicals aren’t saying much other than some upside momentum has waned. This is a persistent and grinding market right now.

PHYS, the real and 100% allocated gold bullion fund, is re-testing the 13.20 support level. So far today we have taken out yesterday’s highs and therefore have confirmed a swing low at yesterdays low. This sets up the swing high at 13.50 as the near term resistance level and price target. The technicals are looking excellent with all taking on an upward trajectory. Support will come initially from the 13.18 level and then from the 20 day moving average followed by the 50 day moving average, 13.03 and 12.91 respectively.

Silver put in a anew high before being beat down by Blythe and her flying monkeys. The up trend is ongoing with resistance waiting at 39.50. The low of the day bounced right off the 18 day moving average and is the first layer of support. Further support comes lower at 35.04, the 100 day moving average. Major support comes in at 33. The technicals show a little more momentum in silver than in gold, MACD and stochastic are still maintaining an upward trajectory. The Bollinger bands have really contracted and are telling us that change is in the air, either a break higher or lower with an increase in volatility. The Bollinger bands are a measure of volatility and the width of the band varies directly.

PSLV, the real and 100% allocated silver bullion fund, did not put in a higher high, and therefore the 17.71 level is confirmed as the last swing high and will be short term resistance. So far on the open this morning, price is vying for that swing high. A day like yesterday is a gift for traders and allows a long trade with a stop just below yesterday’s low. Very little risk with big up side potential. Support will come from the 20 day MA around 16.69. The breakout level of 16.20 is strong support. The technicals look good as with the silver chart.

Both Elder Impulse charts for PHYS and PLSV are painting green bars and are giving the green light for long exposure.

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

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