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8 Hour Gold Update - 2:30 PM CDT
It is apparent that someone was not too happy with a brand new all time high in gold today. It was stuffed back into its box quite unceremoniously I might add.
One can tell from looking at the volume that all of the new longs that bought the breakout of the nearly month long congestion pattern have been handed an immediate paper loss thanks to the barrage of selling.
It will be up to the bulls to hold the line near $1420 or the technicians are going to have a field day trumpeting a false breakout which will engender some further long liquidation, especially because we are entering a rollover period - a favorite time for these bear raids to occur in the past.
If the bulls can hold $1420, they will be okay. If they fold here, the price is going to drop back lower into the former congestion zone and will more than likely test $1410 again.
Either way the price action is not encouraging. The HUI is not helping matters either as it too is puking. Silver also is now looking like the longs are bailing. It needs to hold $36.50 on any further downside move.
Co-ordinated attack with an increase in margin requirements on silver by CME, what timing eh !
ReplyDeleteno doubt...this is blatantly obvious...but just gives us more opportunity to BTD!!...
ReplyDeleteWhat's BTD, Mark?
ReplyDeleteBUY THE DIP
ReplyDeleteyes,buy the dips. but what dip are you suggesting? wheres your target bottom ?.....If you were China,or Russia, or India... where would you start buying ?
ReplyDeleteA basic 10% correction in silver from 38.25 area would be the 34.50 area
and looking at the silver chart shows a neck line cutting through the 34 area as well.
Buying now would be like chasing a bus. Bargains would start at 34 and below. Major support to the rescue would step in around 32...as I see it.
Time is winding down as April begins and heads toward May,if youre looking to consider the influence of summer doldrum in the metals cyclic pattern.