This is a premarket view of the gold, silver and US Dollar landscape for today, Fri. March 25 through the lens of the True Strength Index (TSI) indicator.
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Is yesterday's 4 hour shakeout of the precious metals over? Well, not sure, but it is looking very possible at this point. Here are the continuous contract hourly charts of gold, silver and the US Dollar. This question could be answered affirmatively in the next few hours.
The HUI mining index screamed higher for 6 days until it tested its upper resistance trend line yesterday and was met with a predictable bought of profit taking. Maybe we need today to just catch our breath before the big breakout occurs.
In any event, it appears to me that gold and silver are chomping at the bits to get the show on the road. Today may be the last day to take a position before the rocket launch.
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John-- Check out the 150-day MA on gold, daily chart, especially since the 8-year cycle low in November, 2008. Pretty good guide. (Just stole that from Richard Russell.)
ReplyDeleteAll the best.
John.... When I look at the silver chart at "StockCharts.com" I think I see a negative divergence in the RSI. It's making me nervous.
ReplyDeleteMonty -- being nervous is understandable. But you should also see the same RSI divergence in October, November, December and early March. Did not stop the bull!
ReplyDeleteJohn - I feel Monty's "pain". Just for grins I checked out the RSI of GLD/SLV over the last 6 months. Still looks constructive for SLV.
ReplyDeleteAlso, although Dr Copper is showing lower highs and lower lows, the TSI is still well in positive territory.