From a post on gold and silver on Tuesday…
Very simply, if it’s an H&S it’s a minor one with a target to the SMA 200 or short-term lateral support. Gold has curled back up to test the underside of its SMA 50. A takeout of 1310 and then the March high could put yeller back in business. Otherwise, don’t personalize it. A test of the SMA 200 would be normal.
The H&S was not my thing. I tend not to get overly excited about short-term patterns and surely do not announce them far and wide to stir people up. It was a product of the gold community, some members of which have been flipping in head-spinning fashion between bullish and bearish views. I note it again because I don’t want that stink on me. The upside and downside parameters above were my stuff.
Per the NFTRH Trade Log, I shorted a chunk of GLD yesterday (while remaining long gold stocks and even more so, cyclical assets on balance) as gold poked the SMA 50 per the Futures chart below. Gold’s pullback today was not engineered by the Fed or da Boyz or da PPT, PtB, Trump, Mnuchin or some nefarious super algo. It’s normal. Okay, conspiracy mongers? N.O.R.M.A.L.
Click the chart for a clearer view of gold’s situation at the SMA 50. If it does not clear the March high the SMA 200 (at least) continues to yawn with its gaping maw. 1240 is also doable.
Silver looks particularly lame, but ironically this is the metal I am expecting to bottom first with the question being the two noted (green) support areas. Don’t rule out 14.50. Continue reading "Gold And Silver Still On The Road To A Low Risk Setup"