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Posted 01/11/2014 6:05 pm
Ok I want to bring this up to speed.
First lets talk a little about gold. On 12/31 we gold drive lower, in face it appeared that the yearly low would be touched. In fact it came within roughly within 9 dollars of the yearly low. It proceeded to bounce off that and stayed higher.
Some traders are calling already for a double bottom. Others tend to favor a counter trend move. There is a lot of talk that because sentiment is so negative on gold that all this is contributing to a turn around in the trend.
To me, I try to tune out just about everything and always look at price as my primary indicator. Experience tells me that anything is possible but that trends dont just turn instantly either. Also, vicious counter trends are entirely possible in downtrends. Markets can and will fool everyone.
Looking at our proxy GLD, we can see how price bounced near the yearly low and hasn't really looked back since. There's many a trader who says gold has put a bottom in because the yearly low held. I say its still way too early to call that. First lets see how gold does with overhead supply, which there is going to be a lot of it in terms of price. Keep an eye and see how gold fares at the levels where the green and white arrows are.
I wouldnt be surprised that shortly gold gets smacked down hard again and settles into yet another boring range full of chop. Lets watch, wait and see what happens. IF this indeed where gold stops going down, the coming months will bring us more clarity that will put that more as something solid and probable.
Silver is in the exact same shape. bouncing hard after coming close to its yearly lows. bouncing hard and higher and remaining higher from its low it touched on 12/31. Again tho the same applies here : supply, in terms of price is something it will have to overcome and stay above to make this move stick. The ranges are very clear here as can be seen in the chart. Once again, watch to see if silver and head into the range where the green arrow is at.
So the waiting game continues. Are the lows in for silver and gold? Are we going to blast off mode? Lets be clear: gold and silver remain in primary downtrends, nothing at all has changed. To get above these levels, it will take a ton of work. Can they put the work in? They can, but it is on the buyers to prove that. So remain patient and continue to wait until we get more clarity on where gold and silver want to go.
First lets talk a little about gold. On 12/31 we gold drive lower, in face it appeared that the yearly low would be touched. In fact it came within roughly within 9 dollars of the yearly low. It proceeded to bounce off that and stayed higher.
Some traders are calling already for a double bottom. Others tend to favor a counter trend move. There is a lot of talk that because sentiment is so negative on gold that all this is contributing to a turn around in the trend.
To me, I try to tune out just about everything and always look at price as my primary indicator. Experience tells me that anything is possible but that trends dont just turn instantly either. Also, vicious counter trends are entirely possible in downtrends. Markets can and will fool everyone.
Looking at our proxy GLD, we can see how price bounced near the yearly low and hasn't really looked back since. There's many a trader who says gold has put a bottom in because the yearly low held. I say its still way too early to call that. First lets see how gold does with overhead supply, which there is going to be a lot of it in terms of price. Keep an eye and see how gold fares at the levels where the green and white arrows are.
I wouldnt be surprised that shortly gold gets smacked down hard again and settles into yet another boring range full of chop. Lets watch, wait and see what happens. IF this indeed where gold stops going down, the coming months will bring us more clarity that will put that more as something solid and probable.
Silver is in the exact same shape. bouncing hard after coming close to its yearly lows. bouncing hard and higher and remaining higher from its low it touched on 12/31. Again tho the same applies here : supply, in terms of price is something it will have to overcome and stay above to make this move stick. The ranges are very clear here as can be seen in the chart. Once again, watch to see if silver and head into the range where the green arrow is at.
So the waiting game continues. Are the lows in for silver and gold? Are we going to blast off mode? Lets be clear: gold and silver remain in primary downtrends, nothing at all has changed. To get above these levels, it will take a ton of work. Can they put the work in? They can, but it is on the buyers to prove that. So remain patient and continue to wait until we get more clarity on where gold and silver want to go.
