Gold and Silver – 13 Jul

Gold continues to set new all time highs. Resistance at 1578 has fallen and now turns into support. Price closed above the Bollinger band, which is the only resistance left overhead. Strong support lies below there at 1555. RSI is just now getting to over-bought territory with a reading of 68. Stochastic is indicating over-bought, but is surely going to embed (3 days above 80). Embedding nullifies an over-bought indication and suggests pullbacks are buying opportunities. The current trend is neutral by technicality only with a swing low needed to confirm a higher low. The move is steep and is susceptible to a pullback and it will provide an entry point for those who missed the move so far.

The real and 100% fully allocated gold bullion fund, PHYS, also closed at an all time high. It has left a gap around 13.90 that will fill. Support is now former resistance at 13.96. Stronger support is lower at 13.75. Technical studies are similar to the continuous contract gold chart. This chart has a confirmed up trend with a higher low to go along with a higher high.

Silver has a completely different chart altogether. I am using SLV as a proxy for the continuous contract silver because Stockcharts is not providing intraday price information for that chart. Silver is a long way from its all time high, but SLV appears to be making a serious move to resistance at 37.72. If this resistance is broken, nothing remains as resistance except for the all time high. There is a confirmed uptrend on the chart with a higher and a higher low.  The COT report shows a very small commercial short position that historically presages a big move higher in price. RSI is not yet over-bought and stochastic is embedded, indicating accelerating strength and momentum. Pullbacks are buying opportunities. I think the move is just beginning with silver and for traders it provides less risk than gold. SLV call options are what I play, and I filled the today.

For those who want to play physical bullion, PSLV is the way to go. It holds 100% allocated silver bullion at the Royal Canadian Mint. Resistance is 18.03.

 

 

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

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