we have liftoff!
Sandy, volume is key today for this to be a reversal. I said it once and probably a million times. 145 HUI had to be broken for there to be a flush...I believe I mentioned this many months ago...I just wish I stuck with my original shorts!I am very long ABX and HGU.to
I am not changing my long position in PM's with the posting of these three gold charts that are not particularly positive nor supportive of what we discussed on this forum as a capitulation low. Frankly, a couple weeks ago I thought we would see a higher amplitude bounce to start a secular rally that is looking more like a cyclical bounce. As a side note, silver has not shown any serious deviation from its decline.The chart of 20, 50, and 200 day moving averages is fully bear oriented as the chart formatting would have traffic light orientation for bull alignment.Bollinger Band spread is narrowing with the bands generally declining and price is tracing the midpoint, not an indication of anything but steady as she goes at best for near term. The chart paint is looking a lot like the paint commencing mid May where an apparent orchestrated take down ran stops with subsequent bottom fishing. The drop commencing 13 August looks a lot like capitulation, but it could also be an orchestrated raid gunning stops that had better results because it is located at the round number $1200. All this occurring when PM seasonal buying should be supporting price; not good.The last chart shows MACD rolling over with the histogram still positive but shrinking in spread. The curves never ascended above the midline. RSI has turned down after touching the midline. Parabolic Switch and Reverse has turned negative for the past five trading days. These three indicators are bearish.It is shaping up to be a pivotal week. PM's need to do well if the capitulation thesis is correct, otherwise the bounce late last month is a dead cat version. I also saw a $13.50 silver forecast recently that is not refuted by anything posted here.Have a good trading week!