Last Sunday night I wrote this post titled, “Precious Metals and Miners Setting Up for a Quick Trade,” arguing that using Bollinger Band analysis the metals and miners were likely setting up for a bit more of a bounce than what we had seen since the spring swoon began. I already bought and sold NUGT inside 12631 last week for a quick win.
However, looking at the updated charts of the metals and miners, below, it appears I may be looking to reenter the trade.
As I write this, gold and silver futures are trading higher, and there is still room to bounce up through those upper daily chart Bollinger Bands.
At some point, the unhealthy nature of these downtrending charts, with declining longer-term moving averages, will likely reassert itself again. But bear market rallies are fast, furious, and have a great knack for converting non-believers into bulls just before the rally fizzles and the bear claws come out again.
For now, gold bugs have their reprieve.
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I’m liking the SLV in particular. You were all over that NUGT trade last week!
Looking to get back in if I can nail down a proper entry.
Check out PVG. Chart is turning around and the mine is world class, with world class management.
nice one
GDX and SIL look to close above the 50d today. Worth keeping in mind that this action here may not be just a short term rally, but instead the bottom of a 2 year correction.