Gold & Silver: From Now On All that Matters Is That You Own Both

The most important aspect of the weekly gold chart is the COB, [Change Of Behavior], for what should have been strong selling was actually buyers overcoming sellers, and there was no further downside. Price has not looked back, since.

Gold is near an area of resistance. What remains to be seen is how any correction develops. For that, the daily shows more detail.

gold_price_weekly_28_february_2014

A trend change, for us, occurs when there is a higher low that is followed by a higher high, and daily gold meets that criteria. Gold held the overbought upper channel line for several trading days, certainly not indicative of a weak market.

For as much as we see gold likely to not trade substantially higher, soon, that is a bias which must be ignored, for two reasons. 1] Anything can happen, and 2] having such a bias tends to preclude seeing activity contrary to that bias.

Friday’s intra day activity appeared bullish, early on, and we recommended a light position to the long side. It is more difficult to position in a market that may be turning its trend, but one has to follow a consistent approach and make adjustments as needed.

gold_price_DAIly_28_february_2014

We are not sure how accurate the volume is for last week, but if it is as high as shown, it created a ref flag against the downside. It is something to watch for next week.

silver_price_weekly_28_february_2014

Instead of declining further, after Wednesday’s large decline on sharply increased volume, price held in a sideways pattern. There is potential support in silver for the first time in a long time. Depending on where the next correction stops, it is possible for bullish spacing to develop. If so, it will add to what appears to be a changing market.

silver_price_daily_28_february_2014

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