GLD, weekly2, rainbow
SLV, weekly2, rainbow
Summary
It remains a VERY interesting time to be trading the metals. We've seen a very considerable - and consistent, fall since QE3 was announced last September.
We've seen a pretty clear 5 little waves lower, and the big question now is whether the metals are going to be able to break above the descending upper channel resistance line, or if they fail.
Another fail for likely bode for much lower levels into the early summer, perhaps a major drop with SLV in the very low 20s..even high teens, and GLD in the 130/120s.
Near term outlook
I am guessing the metals - considering how low they remain, will get at least a kick higher on the next FOMC. I do not expect QE to end any time soon, and once the market hears that, we should see at least day or two higher.
It will be critical though for both Gold and SIlver to break that upper channel line.
The 'break' targets are pretty clear...
GLD 162
SLV 32
If we see those hit in the next week or two, then a major new multi-month up cycle will very likely be underway.
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*I am long SLV, seeking an exit in the mid 28s, although low 29s are viable on an FOMC reaction spike this coming Wednesday/Thursday.
