Thursday, March 1, 7:04 pm EST. Well, I’m NOT prescient, but price support was broken today, and I saw prices off a good bit… then, just moments ago, I looked in to start writing, and saw nearly all had closed UP! I realized then some sort of intra-day reversal had taken place.

GLD broke support. Price fell a good bit after that… then it recovered to close above the broken support, but price was volatile, and volume was 53% greater than it’s 50-day average. Traders saw, and knew what I had seen. It was at support… support was broken. More selling came in… technical indications of risk showed it all wrung out, and buyers stepped up to snatch up shares. It raced up pretty far and fast, and some then sold into that instant gain so as to take a quick profit. All that translated into rather high-volume volatility on the day.

I see the same thing with SLV, only it managed to close higher on the day, as did nearly all the miners and funds. Only CDE and ABX closed lower, along with GLD. This kind of price and volume action results in Bullish Engulfing pattern candlesticks, and is totally indicative of an intra-day reversal to the upside, of the very nature that I wrote of only last evening. I’ll update the timer, and see where the indicators land, but all is pointing to the very real possibility, that it is attempting to make its stand here, and to commence an upside price action rally.

Now, the thing to look for, is to see if it has any follow-through… if it can gain any traction, and truly start to lift with any conviction on volume. Today’s action says that it should, but we’ve been disappointed so many times for so long, it’s hard not to have a jaundiced and skeptical eye to it. I’ll update the timer, and see if it can add anything more.

Harold

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2 thoughts on “Support Did Break, Then Recovered!

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