Loading ...Very Close To Turning Bearish On PM’s
Well, it’s a case of having to play it safe now, My first (linear) chart of gold price says we can fall about another $30 before breaking below our critical uptrend support line…
But…the log chart has proven very important for the last 18 years. It says that anymore downside, with a close below approx. $1280 on a weekly basis spells serious trouble. That’s serious, with a capital S (closely followed by H-I-T.)…
Would a similar log graph of gold in euros inspire more confidence at this moment?
I dont think so Curly. Euro is UP and Gold Down hard….Gold : XEU …huge gap down of an island top
See my latest post CT 🙂
Thanks for your as always honest and reflective input Northstar.
This could be the final wipe out before the turn of course.
It does look ominous BUT the Miners are holding up well
usually with Gold down 25 bucks and Silver down 50 cents the miners would be down 5 to 10%
so far less than 2% on aggregate.
Tough spot.
Cheers Fully. Just trying to say it the way it is. We’re clearly at a pretty crucial turning point here. Up, and we’re laughing all the way to the bank. Down and it could be a total disaster for the PM space for many years.
Good observations Fully.
I called the SLV top last night, although I did expect that result overnight but perhaps next week.
Now Ranch and I are in agreement that the dollar is (short term) overextended and is due for a pullback.
But pullback only.
So perhaps miners see that, and will complete their IT rallys before my LT bearish view takes hold.
Ie, WHIPSAW CITY going into July. Then the meltdown I see coming.
I’ve got my gold and silver holding hedged…my social security check is denominated in $US so its all good.
NS…I am sure you noticed, but if you put a simple moving average (say 10 period) on that TRIX indicator in the first chart you would probably have bailed out of gold (or hedged heavily) 4-6 weeks ago. In any event, I don’t like the direction TRIX is heading.
Thanks again for all of your work.
Jim
I like the TRIX indicator too, but overlaying ANOTHER MA on a trix setting seems overkill.
TRIX is already a triple smoothed indicator.
So you’re essentially calling for a FOURIX.
Gotcha.
Thanks, Northstar. Better days ahead?.