Gold and Silver – 14 Jul

Gold made another high and looks like it wants to turn lower and place a swing low, my guess is the breakout level and support at 1555 is the worst case scenario. The 18 day moving average is climbing toward that level and will bolster support near 1555. RSI is over-bought and price closed outside of the Bollinger band for the 2nd day, lending credence to the idea of a small pullback. Stochastic is embedded and means the character is changing from simply over-bought to that of a strengthening market. Pullbacks become buying opportunities in anticipation of continued strength.

PHYS, the 100% allocated gold bullion fund announced plans for a follow on offering, their 2nd one following the IPO. The effect of this is non-dilutive because shares are issued directly corresponding to the additional gold acquired. But, with the anticipation of additional supply coming, the premium to Net Asset Value will drop from the current level of 5.6%. In light of this, the gap around 13.90 will most likely fill in the next couple trading days. Support is at 13.95 with stronger support at 13.75. As with the continuous contract gold chart, RSI is at over-bought levels and price closed outside of the Bollinger band. stochastic is embedded, pullbacks should be considered buying opportunities until the fast line of the stochastic indicator drops below 80.

Silver closed up, but well off the highs of the day and above the Bollinger band. SLV closed just below resistance at 37.72. Support is at 36.71 and lower at 35.90. RSI has room to run with a reading of 61. MACD is putting a bullish cross of the neutral level and stochastic is embedded indicating strengthening momentum to the upside where pullbacks are buying opportunities. The gap around 36 is troublesome and should fill. Gaps fill 95% of the time and gaps the form on low volume in my experience always fill. If you believe in the uptrend in place a buy in the gap would be a great idea.

PSLV, the 100 % allocated silver bullion fund,closed just below resistance at 18. The premium to NAV remains sky high at 19.3%. This tells me that physical silver cannot be had, else Sprott would be acquiring silver to reduce this premium. Support is 17.06.

 

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

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