Volume and Price Action
First example using US equities, a simple glance shows it all. This is not a breakout analysis, its a momentum analysis. I’d take a step back and wait for the bigger picture.
Two easy observations:
1- Expanding volume often indicated volatility and downward price movement.
2- Contracting volume often indicated low-volatility and upwards price movement.
Edit: adding GDX
Last thought: This doesn’t say volume can’t spike up on down days creating a crash… I’d wait until month close to remove most doubt about this price action being a breakout or not.
I have to go with Fully on this one.
We have all been enjoying the ride, but the gold stocks have been about one week in front of the stock market and this surge in gold looks to me like it could be a head fake back test. Don’t know that but it has that potential.
Don’t for get to ring the cash register
https://stockcharts.com/h-sc/ui?s=GLD&p=120&yr=0&mn=3&dy=15&id=p58669754773&listNum=300&a=740821332
Not mentioned above is that gold volatility is now rising and the gold silver ratio rising as well. Not conducive for upside followthrough