Tuesday July 16th – Silver Stirring
DJIA – The General Markets climbed higher again Monday, with the DJIA break out finding follow through. I expect a dcl soon, it may provide a back test…
SPX – Day 29 makes this first daily cycle Right Translated, so a pull back into a dcl can be bought, expecting a rally back to these levels. The wedge is a (short term) Bearish rising wedge.
WTIC – Oil is dropping and may just do a back test, since it just broke above strong resistance. If it breaks down through what should now be support, it could be a problem. ( So with that break out, this remains Bullish for now).
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GOLD – Golds volatility is drying up , so the large chop dried up for now too. Gold formed a smaller triangle inside the larger one. This smaller one is at the apex, so Gold is ready to break out higher or lower, but it could still just be a short term move to the red line. It also may be ready for a larger move because…
SILVER – While Gold was down slightly, SILVER broke higher, closing up 13 cents. If silver breaks out & runs, Gold could follow, and the Miners may be ready to go too.
SILVER – Looking at this chart, it looks like ( by eye) a break out roughly above $15.40 would be the start of a break out for Silver.
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SLV – SLV certainly looked like it is breaking out, and after what I had called ‘lighter than I like to see volume’ on Friday, Monday had the Volume that is exactly what I like to see. The MACD wants to cross higher too. I have $15.20 as an initial target if this breaks & runs.
SILVER WEEKLY – That initial target for Silver is roughly $16.25, which coincidentally, reaches the 200 week MA.
GDX – On day 9 you could say that this looks like a mini cup & a small handle. I’d like to see a surge of volume come in, if it goes higher, because volume was relatively light here on Monday, compared to recent June/July days.
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Keep your eyes on Silver if you are watching the Precious Metals. As noted in the weekend report with this chart, Silver breaking the down trend could be a big deal. $15.50 seems to be a clear break out, though $15.40 could be where it starts. It could happen this week, and it could be that that move already started on Monday. If so, this could be a fun week, instead of another week of a choppy consolidation period.
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Enjoy your Tuesday trading!
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~ALEX
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ALSO IMPORTANT:
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SILVER / GOLD RATIO – This is set up Bullishly and is also starting to break out. Silver is starting to lead Gold, and stop its lagging.
SILVER – As I write this report on Monday night ( Eastern US Time), Silver ran up to that $15.40 area, and you can see the start of a break out. It needs to hold & have follow through to draw in buyers.
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**EDIT – this is Silver As I proof read. It popped & dropped, but why is this important?…
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This is the USD at 7:10 a.m. Eastern Time , and it looks like it had a very strong burst higher, but as it did, GOLD & SILVER are holding up well. That is a good sign so far.
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By request:
FSM dropped, filled a gap, and regained the 50ma with a reversal candle. That looks good to me and now it is oversold.
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AMD- If I am thinking that we are due for a DCL, I think that I would take profit ( or at least some) if AMD tags the top of this trend channel , you may be able to buy it back at the bottom of the channel ( or 50sma again).
