Silver Does it Again!
Gold Trading Alert today will be quite exceptional as it will be very brief. The reason is simple – practically nothing changed on the charts during yesterday’s session, except for a small move lower in the GDXJ.
This means that everything that I wrote yesterday simply remains up-to-date.
Please note that the rising support line in the GDXJ is not far away, and it can be broken any day now. This would be the first small domino to fall that would probably end up becoming a truly massive decline. But I already discussed that thoroughly in the previous days.
Today, I would like to emphasize what is currently happening in today’s pre-market trading.
Namely, silver soared relative to gold on a very short-term basis. This is a bearish sign. Yes, we saw it a couple of times in the recent days, and there was no massive decline yet, but that doesn’t make it any less important.
Conversely, it’s the case that the repeated indication becomes stronger. So, silver’s performance since March 20 is a big sell indication on its own.
Just as the night is darkest before the dawn, it “seems most bullish” right before the biggest slides.
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Przemyslaw K. Radomski, CFA