Gold, Silver: Failed at Support
In Gold, One More Push… I wrote: “One more push down, to about $890, should unleash serious selling...
Sensing a vulnerable market, the powers that be have already started moving to push Gold down. Rumors of significant IMF Gold sales have started hitting the wires.”
This prediction actually caused a couple of the uber Gold bugs to have an instant seizure and throw a temper tantrum in the comment section. Both Gold (GLD) and Silver (SLV) then immediately did drop through support…
GLD broke support around $890… and it did unleash serious selling. Support around $850 and the rising 200 day EMA (green line) halted the slide. Yesterday resulted in a gap fill. With that complete and the $890 area now resistance, expect some consolidation before another leg down. The target is about $810.
SLV broke all support, falling below absolutely everything. The 200 (green line), 50 (red line) and 20 (blue line) period EMAs were all smashed. The rising trend from November 2008 was violated and the 38.2 Fib around $12.60 as well. The target is about $11.00.
Evidence of global deflation is starting to mount. Commodities will get it from both sides. First further reduction in demand will result in lower prices. Second, deflation will result in lower prices.
This won’t just affect GLD and SLV, but other commodities such as Oil (Rising Bear Wedge, Break Down).
Swiss slide into deflation signals the next chapter of this global crisis: “Watch Switzerland closely. It is tipping into deflation, the first Western country to succumb to Japan's disease.
Swiss consumer prices fell 0.4pc in March (year-on-year). Swiss CPI will be minus 1pc at least by July, nearing the level where spending psychology changes. By the time you have a self-feeding spiral, it is too late.”
Sensing a vulnerable market, the powers that be have already started moving to push Gold down. Rumors of significant IMF Gold sales have started hitting the wires.”
This prediction actually caused a couple of the uber Gold bugs to have an instant seizure and throw a temper tantrum in the comment section. Both Gold (GLD) and Silver (SLV) then immediately did drop through support…
GLD broke support around $890… and it did unleash serious selling. Support around $850 and the rising 200 day EMA (green line) halted the slide. Yesterday resulted in a gap fill. With that complete and the $890 area now resistance, expect some consolidation before another leg down. The target is about $810.
SLV broke all support, falling below absolutely everything. The 200 (green line), 50 (red line) and 20 (blue line) period EMAs were all smashed. The rising trend from November 2008 was violated and the 38.2 Fib around $12.60 as well. The target is about $11.00.
Evidence of global deflation is starting to mount. Commodities will get it from both sides. First further reduction in demand will result in lower prices. Second, deflation will result in lower prices.
This won’t just affect GLD and SLV, but other commodities such as Oil (Rising Bear Wedge, Break Down).
Swiss slide into deflation signals the next chapter of this global crisis: “Watch Switzerland closely. It is tipping into deflation, the first Western country to succumb to Japan's disease.
Swiss consumer prices fell 0.4pc in March (year-on-year). Swiss CPI will be minus 1pc at least by July, nearing the level where spending psychology changes. By the time you have a self-feeding spiral, it is too late.”
Gold, Silver: Failed at Support
Reviewed by Information
on
06.02
Rating:
Reviewed by Information
on
06.02
Rating:
Tidak ada komentar: