It looks bad… is it? I don’t know yet. I see all red, and the %s down look a bit big. Has support failed? Are metals collapsing? Friday was hard on gold and silver. So, let’s get to the charts. They talk to me.
Okay, well, first of all… I guess it’s not as bad as it first looked! I have all decliners, and the first one I see is on LOW volume, AND price support held! I’m talking about AG. How many others? Let’s see… there’s CDE, HL, RIC, PAAS, AUY, SLW, SLV, GLD and SA.
I’ve others that also closed down, but only on average volume, and they also held support. There’s SSRI, AKG, FSM, IAG, PVG, ABX, RGLD, KGC, SGDM and EXK.
Now, I do find a high volume sell-off, but its support is still in place as well, in: GDX.
Fascinating! We’re right at support. Half closed down on low volume. Half closed down on average volume. And, only where the more amateur would be… in GDX, was there any high volume. The charts are sending quite a message, and that message would be… we’re not worried. We’re not spooked, and we’re not scared! So, let’s see what happens from here.
My guess, as I derive an opinion from my charts, is that this would be an excellent place from which to add shares, if I were so inclined, or, and this is the safer move (unless one employed tight stops), look for the reversal, and an expansion in volume… and hop aboard, as this is a new Bull Market. It’s still very young at 4 months old, and it’s likely a very much longer way to go yet.
It’s also worth saying, as this is very important… if this level of price support were to fail, there is a much stronger and more important support level where they all broke out from back on Friday, April 8. I’ll be on guard to see if this current level holds, or if we should back up to the next one.
The metals are up from Monday’s closing, but off a bit from Friday’s, when we last traded them. And, the reason’s clear. As the dollar recently rose, the metals declined… now, the $USD is on the decline, and the metals are moving up again. If this is a real shift in trend for the dollar, then it will be for the metals, as well… to the UPside! Let’s see what Tuesday will bring.
Here’s to your accumulation of real wealth!
Harold F Crowell