PHYS & PSLV – 8 JUN

Our only 100% fully allocated gold bullion fund opened lower today and in doing so established the latest swing high on the chart at 13.68. The up trend is intact and will be so until the swing low of 13.15 gives way. We are looking for a higher low on this reaction. Stochastic is looking like it wants to cross the 80 level, and if it does so it will lose embedded status (3 days above 80). The target for such an eventuality is the nearest moving average, in this case the 20 day MA (dotted gray) at 13.16. Resistance at 13.54 is still valid with support coming in at 13.15.

The Elder Impulse chart has painted a blue bar and signals exit from all positions. Of course this is for traders only, investors should not sell their gold at any point until gold is valued at its paper-free price. The blue bar results when either the price falls below the 13 day EMA or the MACD histogram is declining. Usually it is the histogram that declines first. The 13 day EMA supported price on the last pullback and may do so again. A decent entry may be to buy near that average with a stop just below 13.15. If price falls that far the up trend will be nullified. In trading, the trend is your friend indeed.

Our 100% allocated silver bullion fund has cemented the short term downtrend by putting in a lower high to go along with the lower low, the very definition of a down trend. Yet, price is sitting right on the lower boundary of the longer term up trend channel. Chart support is just below the current price near 16.20 along with support from the 100 day moving average. Resistance is going to be the newest swing high at 17.06 with 18.03 above that. If 16.15 falls, the down trend continues. If price reverses prior to that point the current short term downtrend will be nullified and the chart will be neutral.

Here’s the Elder chart and it is painting a red bar, indicating short trade exposure. Both gaps in the last week of May have filled. 16.15 is key and must hold or we will see a run down to test 15.0.

The long term chart is still bullish for silver.

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

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