Gold and Silver – The Devil’s Advocate
I for one am not sure Gold will continue the uptrend come Monday. I could be wrong, I often am. Here are my reasons for skepticism.
$Gold closed with a Doji candlestick at a possible double top on Friday. The Doji at a top or bottom indicates indecision, and a possible change in trend. The negative divergences in RSI and MACD indicate a slowing of momentum.
$Silver has been lagging the $Gold price, and may be leading the way down. It seems to have already put in a double top, and Friday’s action could be a BT to the break down.
Why should the metals price fall when currency printing, falling interest rates, and a collapsing stock market should be driving the price much, much higher? We join George Gammon mid pod cast for a clue:
https://youtu.be/xE6aKTziunE?t=596
I have miner and currency charts that are looking ominous. I can post some later on if there is interest.
Great video, thanks for posting.
Hi SF. It isn’t a negative divergence unless the indicator has peaked with a lower high and turned back down – in this case, it’s still rising. Thanks 😉
(Referring to the gold chart)
OK then, potential negative divergence.
Priced action in the miners on Friday was nothing short of horrible with gold price near making new high, any weak tick in the gold price and the miners seemed to over react to the down side. I am kicking myself for not taking profits I had in miners on Thursday only to see those profits move underwater on Friday. The doji says it all…indecision!
Miners are a Major Nuisance .
But I wouldn’t be without Gold the metal in this enviornment ….the model calling for grossly lower prices are ridiculous IMO.
>> I wouldn’t be without Gold the metal in this environment. <<
Nor would I sell any physical metal. But I am prepared to buy more if the price drops.