Both PM's are cooling their heels a little which I'm glad to see, a 1 day or less pullback doesn't give much time to put together a very solid base, the larger the base (with accumulation) the stronger the move it can support, likewise, the bigger the top (with distribution) the harder the fall.
I expected both SLV and GLD to show accumulation in to the pullback which would lead to a high probability leg higher as the longer charts suggest (there's still plenty of gas left in the tank), I didn't think we'd see it so soon and as strong as it was earlier, now it's dialing back a bit which is good.
Usually Gold and especially silver are my least favorite assets to analyze, but with the signals so strong, they couldn't be ignored.
GLD intraday 1 min shows the early positive divergence and now it's cooling off a bit before prices rise which should allow it to accumulate more at more favorable prices.
GLD 3 min (it's the longer 30+ min charts that really show the power in these two assets as seen in the last post), shows the bottom on April 4th which is exactly where we bought and yesterday's distribution and sale at the top, however we can already see a positive divergence building on a longer intraday chart so I think both of these are going to offer a nice pullback position at better prices, low risk and very high probabilities.
SLV 1 min was very positive earlier, price started rising and it's cooled off, this looks like the work of a specialist, edging back prices as they start to rise so they can continue to fill the order at favorable prices.
The SLV 3 min chart showing yesterday's clear short term distribution and the reason for closing the 2x leveraged silver long AGQ at a decent profit. Again the positive divergence on the longer intraday chart is already present.
S:V's 5 min chart, also bought on the 4th at the very lows of the move on a sharp positive divergence and sold yesterday, right now today's trend on this chart is in line so we know where to look next for migration of the divergence. I'm honestly glad to see them building stronger and giving a little more time to determine the best way to play them.
No comments:
Post a Comment