Earlier today I posted,
"Precious Metals Pullback / Trade Opportunity" in this post I gave the reasons I though this was a simple, normal pullback/correction and said that the deciding factor on whether or not the pullback is a buy is whether or not we see accumulation in to the pullback.
"Last week's positions in gold and silver (I chose 2x leveraged ETFs for both rather than 1x as I wanted an extra kick, but didn't want to use options for this exact reason) are pulling back, so long as the pullback shows positive divergences in to the pullback and the charts look generally good, I think this could be an interesting area to add to partial positions started last week or to start new ones, I still prefer 2x leveraged ETFs."
We have initial confirmation of positive divergence in both GLD and SLV as well as their futures. I'm not saying the pullback is done, a reversal from even a shallow pullback is still a process, not an event, but it does look like both of these should be on your radar if you have any interest in the positions.
GLD 1 min from a negative divergence last week causing the pullback to a relative positive (the first signs of accumulation in to the pullback)
The GLD 2 min chart (as divergences should migrate to the longer timeframes_ is already showing the same signal of a relative positive divergence this morning.
Gold E-mini futures 1 min are also showing a positive divergence this morning in the same place on the intraday 1 min
And the first signs on the 5 min are showing too, but this won't likely be a "V" reversal, it needs more time, but looking good so far.
SLV 1 min showing a positive divergence this morning on the 1 min
As well as the 2 min
Silver futures 1 min also positive this morning
The 5 min is not quite there yet, but ever since we first looked at this trade, silver was lagging gold slightly.
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