Silver and Gold into Christmas
- Posted by Greg Harmon
- on November 23rd, 2012
Now that Thanksgiving is done we can focus solidly on preparing for the biggest holiday of the year Christmas. And as Sam the Snowman (Burl Ives) noted above that means turning toward Silver and Gold. So how do they look?
iShares Silver Trust, $SLV
The iShares Silver Trust, $SLV, broke out of an ascending triangle in August and ran higher through September. Pulling back to the 61.8% Fibonacci retracement of that run, it found support and is moving higher again. If it can get through the 50 day Simple Moving Average (SMA) and the the 23.6% retest then resistance at 34.10 is the only roadblock remaining before a Measured Move higher to 36.60. The rising Relative Strength Index (RSI) that is on the verge of a move into bullish territory and the positive Moving Average Convergence Divergence indicator (MACD) both support further upside. Try it long here against a stop at 32.
SPDR Gold Trust Shares, $GLD
SPDR Gold Trust Shares, $GLD, have a similar profile in the chart. Breaking from a symmetrical triangle in August and rising through September then also pulled back to the 61.8% Fibonacci level before bouncing. Now consolidating over the 38.2% Fibonacci retest from below, it is building an ascending triangle against resistance at 168.25. A move over the top has resistance at 170.40 before a retest at the top at 174.07. The RSI is not as accommodating for Gold, stalling at the mid line, but it does have a positive MACD to support a move higher. Wait for the break of the 168.25 resistance before entering.
Silver does look like the better play at the moment. And speaking of Silver, Gold, Christmas and Fibonacci levels. I am feeling inspired. Look for a special offer here starting Sunday!
Join the Dragonfly Capital Views Premium Membership
These trade ideas are one piece of the Premium Service, which is complemented by weekly trend analysis, daily earnings plays and access for personalized analysis. Sign up here to get deeper analysis and nearly 50 trade ideas every week.
If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
Dragonfly Capital Updates
- Macro Week in Review/Preview March 7, 2014
- Top Down Options Trading, Risk Management, and Collars
- Time to Sell Corn?
- Long Term Pick of the Week: Bridges, Iron and Voodoo
- Premium Earnings 3-6-14
- Your Second Chance in Natural Gas Is Here
- The Third Pitch From OpenTable
- Premium Earnings 3-5-14
- Prepare for The Euro Breakout
- Hogs and Bats and Crabs