Gold and Silver – 30 Aug

Gold got a shot in the arm from a Bankster from the Fed and tacked on 50 to close right at yesterday’s high and resistance. I have the Andrew’s pitchfork showing price right at the resistance along the mean line. If we get a close above that line it bodes well for a run to the top of the upper channel and a challenge of the all time high. Support is in at the 18 day moving average around 1837 followed by the Fibonacci 38.2% retrace near 1750. Finally, the swing low at 1705 provides the final level of support. stochastic has put in a bullish cross and RSI is climbing. Both are now where near over-sold and bodes well for a decent move higher. I was hoping for another shot at 1700 level for an option play, but it is looking like gold may be too strong and the 3 day correction was all we are going to get.

PHYS has built of a 3.72% premium on today’s close. A close above 16.06 and we may be off to the races. On this chart we actually have a new uptrend in place with a higher high and a higher low. We do not want to see the swing low of yesterday to be taken out and support is just below there at the 18 day moving average and the Fibonacci 38.2% retrace near 15.40. PHYS is the best you can do for gold that must be held in paper. It is 100% allocated and stored at the Royal Canadian Mint, a far better choice than GLD which has unallocated gold exposure.

Silver is looking promising and may offer the best trading opportunity. Price is finding solid and continuing support at the 18 day moving average, currently at 40.35. The 45 day moving average has crossed the longer duration 100 day moving average and in doing so establishes the preferred configuration where all moving averages lie below price in order from shortest to longest duration. Resistance is yesterday’s high at 41.80, support is the 18 day moving average at 40.35. A breach of 41.80 sets up a new up trend with a higher high. I like a call Jan 45 Call with a just below 40.50. Nothing lies between resistance and the Bollinger band at 43.46.

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

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