GOLD TRADE ALERT (3:30 pm EDST)
Gold prices have been rallying strongly this week and making new weekly highs whereas silver's rally has been sluggish and prices are staying well below last week's high of $26.73. This is setting up a strong bearish divergence signal. We are also at the end of a strong reversal zone for both precious metals (July 7 - 15). Today's high in gold ($1833) and yesterday's isolated high in silver could therefore be a top. Although there's now a good chance that gold started a new medium-term cycle on June 29 (which would make it young and bullish), it looks like silver may be completing an older cycle and is ready to move down to it's final cycle low. Both metals could take a correction now with silver making a new low and gold staying above its June 29 low ($1752). Let's use this opportunity to reclaim much of our loss from our June 16th long position in gold. If gold does drop and stays above that $1752 low, we will go long again soon. We may also go long in silver if it moves to its final medium-term cycle bottom over the next few weeks. Selling my long position in gold today. Staying on the sidelines of silver.
I will post another update later tonight on the rest of the markets.
Gold prices have been rallying strongly this week and making new weekly highs whereas silver's rally has been sluggish and prices are staying well below last week's high of $26.73. This is setting up a strong bearish divergence signal. We are also at the end of a strong reversal zone for both precious metals (July 7 - 15). Today's high in gold ($1833) and yesterday's isolated high in silver could therefore be a top. Although there's now a good chance that gold started a new medium-term cycle on June 29 (which would make it young and bullish), it looks like silver may be completing an older cycle and is ready to move down to it's final cycle low. Both metals could take a correction now with silver making a new low and gold staying above its June 29 low ($1752). Let's use this opportunity to reclaim much of our loss from our June 16th long position in gold. If gold does drop and stays above that $1752 low, we will go long again soon. We may also go long in silver if it moves to its final medium-term cycle bottom over the next few weeks. Selling my long position in gold today. Staying on the sidelines of silver.
I will post another update later tonight on the rest of the markets.
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