PHYS AND PSLV – 2 JUN

PHYS, the real 100% allocated gold bullion fund, closed down on the day and in doing so made a lower low. As of now the uptrend is neutralized. A lower high today would initiate a new short term downtrend. Resistance is the recent high at 13.54 with support around 13.16. Further support is coming in just below that level around 13.0 from the 20 and 50 day moving averages. Stochastic has crossed the 80 level and is heading lower. The initial target is the first moving average or in this case the 20 day MA

The Elder Impulse chart is now painting a blue bar, signaling exit from all trades. The MACD histogram is lower day over day while the price is still above the 13 day exponential moving average. If price gets below the 13 day EMA, then the bar will turn red, signifying a short trade entry point. This signal will be ignored until price falls below the 65 day EMA (blue).

PSLV, the real 100% allocated silver bullion fund,also closed down hard and has nearly completely closed the 1st gap that formed last week. 95% of all gaps fill. Price bounced right on chart support  and the 100 day moving average around 16.20. The next layer of support comes in at 14.86. Resistance is at 18.03. Technically the chart is neutral with a lower low guaranteed, but the downtrend will established on any reaction that sets a lower high than the previous one at 18.03. All the technical studies have turned bearish in the short term.

It shouldn’t be any surprise to see the Elder Impulse chart has painted a red bar, as silver is definitely weaker than gold right now. A red bar results when both the MACD histogram and the 13 day exponential moving average are lower day over day. In this case the red bar indicates entry into short trades and is honored because price is below the 65 day EMA (blue). Momentum has now shifted decidedly to the bear camp in silver.

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