Gold closed down. Silver closed up. In the overseas markets, the metals are up slightly as of 6:55 pm EST. And, the miners? Mostly up. Only a couple closed lower. It looks like a bullish development shaping up at this time. Let’s check all the charts.
Shall we start with gainers on light volume? See: PAAS, RGLD, ABX, SLV, SILJ, CDE, SSRI, AG, FSM.
And, gainers on big volume: HL, PVG.
We’ve decliners on average volume in: SGDM.
While gold itself, as GLD, declined on light volume, and is holding at the 2/5 support level I identified when price closed that gap between 2/5 and 2/8. As did GDX, SGDJ and SLW also decline on light volume Tuesday.
So, we clearly have this situation where the metals had broken their support level back on 11/23, while the miners did not follow suit. That was a very significant, and bullish, development. Everything had developed the same basing pattern, prior to the 23rd, but only the metals, themselves, fell through support… none of the miners did, and that support held, and has held since first established back on Monday, 11/14.
Average volume for Tuesday had declined by 30%, and indicates it was no ‘high conviction’ day. When we get one, either up, or down, volume will expand greatly, and that is what we are waiting for. We have a bullish set-up, and we are awaiting whatever news catalyst will cause that move with conviction and volume. The greater odds is that it will be to the upside, with this present set-up.
Now, as of Wed. morning, at 7:21 am EST, we have a similar situation, where gold is off a bit, and silver is up slightly. It’s shaping up to be another do-nothing sort of a day.
Here’s to your accumulation of real wealth!
Harold F Crowell