Metals in strong morning reversal

With overnight sharp declines, the metals opened lower, but immediately started battling back higher. There was a very sharp jump in the 12pm hour, and after a little pause, Gold/Silver climbed into the close, with gains of 2.9 and 3.7% respectively.


GLD, daily

SLV, daily

Summary

So, a pretty exciting day for those watching/trading the precious metals.

Silver put in a new low, although Gold held just above its April low.
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Today saw a rather classic bullish engulfing candles for both metals, and the likelihood is for further upside, at least for another few days.

*weekly/monthly charts still look pretty ugly though, and will remain so, unless the declining resistance (which is indeed a very long way up) is closed above.
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Underlying MACD (blue bar histogram) cycle is now ticking back higher, and if what we have just seen is a smaller down cycle, then a new multi-week up cycle can now begin.

If that is the case, then it bodes very well for the mining stocks, including GDX/GDXJ.