It’s been strange. The metals closed the day relatively unchanged. Silver managed to do better than gold. The miners were mixed, with some up, and others down. So, I suppose the support for metals remains broken, while the same for the miners we track are still all intact! That was bullish then, and if that’s what we find again this Friday evening… it would still be bullish now. Support exists where miner prices were lowest on Monday the 14th.
Gainers on light volume: HL, RGLD, SGDM, ABX, GDX, SILJ, CDE and AG.
Decliners on light volume: PAAS, PVG, SSRI, SGDJ, FSM and SLW.
Meanwhile, gold closed down a bit, and is not only in violation of support, but is now at what would be considered the ‘next’ support level of 2/5, a price from which it had gapped up from… having just now closed that gap. This becomes a potential support level for gold. Friday’s decline however was on very light volume.
Silver rose today… on very light volume.
The total volume for all was 53% lighter than the 50-day average. As I closed Wednesday… the miners don’t fare better than the metals to the downside, if it’s truly bearish… they do worse! This is not what is happening. The miners are holding up considerably better than the gold and silver prices, and despite the length and depth of this correction in prices… the present price action in the miners, in relation to the metals themselves, is actually a very big positive.
Just for yucks, I put a Fibonacci chart up on the average of all 16 symbols, from the low of 1/20 to the top on 8/11… and, the 23.6% level was the first support area broken on 10/4, which was tested as resistance and failed on 11/9. The second Fib support level at 38.2% was tested on 11/10, then broken 11/11. The third level of Fib support, at 50%, was then tested on 11/14, and is where prices are at right now. Again, for those who have any faith in Fibonacci numbers, the 50% retracement level is a very common level, after a tough correction has been ongoing, from which new rallies, and price recoveries commence from. Let’s see if we shall have any such experience as that next.
Here’s to your accumulation of real wealth!
Harold F Crowell