Gold and Silver – 20 Jul

The spot gold chart looks like it might have put in a higher low when it closed well off the lows of the day. If we have some follow through tomorrow, the uptrend will remain intact. Price never did take at the current swing low and support at 1577. RSI is just peeking below the 70 level and leaving over-bought territory. Stochastic remains embedded above 80 and suggests that weakness in price is a buying opportunity. Resistance is now the swing high and all time high at 1610. Price has moved nicely back into the Bollinger band.

For traders, here is your GLD chart. Same story as the spot chart with different numbers associated with support and resistance.

Here’s the PHYS chart. PHYS is a 100% fully allocated gold fund and should be the first choice for investors who will buy and hold.

Silver also may have put in a higher low on a strong rally during the day. Price bounced right where you would want it to in order to maintain a bullish stance, at support around 38.50. For now the uptrend from the bottom at 33.38 continues. RSI has come off enough to say there is room to run higher. Stochastic remains embedded and indicates a strengthening bullish stance. As with gold, price has moved back into the Bollinger band. Support remains at the 38.50 level with resistance at 40.88.

For traders, here’s your SLV chart. My Jan 40 Calls are cooking along just fine and will do some real good stuff if we can establish a higher high with a break through resistance at 39.69. Technically speaking this chart has gone to neutral in trend with a lower low in place to go along with the higher high, but spot silver held the swing low. Support is 37.70 and resistance at 39.69. I think the bullish case remains intact for SLV as long as the blue trend line holds. The gap around 36 is troublesome and I remain on a hair trigger.

For those who want exposure to real and 100% allocated silver, PSLV is your choice. With the volatility inherent in silver, one can both invest and trade PSLV. Here’s the chart. It also is showing a troublesome gap and has put in a lower low, nullifying the current uptrend. A good buy would be in the gap around 17.21. Resistance is 18.99 and support remains 18.0.

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

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