If you are playing for the precious metals miners bullish divergence we looked at yesterday to continue to play out, with metals catching up higher, then I would look at $117.60 on the gold ETF.
On the 30-minute chart, below, you can see the falling wedge pattern within, of course, an established and steep downtrend. Risks remain elevated, and in order for the bull case to have a chance even for a few days they will need a close above the 20-period moving average, as well as highs from late this week, pretty much right at that $117.60 level. Without that happening, I do not see much of a trade.
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Again, Nice follow-up. Based on what I saw yesterday, and the overwhelming bearishness in the sector, I think this counter-trend rally has legs. End of quarter selling brought spot gold to an overnight low of 1180, and a higher low this morning of 1186. With an RSI of 20, I’m going to be aggressive here.
Thank you, Dale. Good luck!