Just a quite note on today’s session before it ends. In short, today’s session is very much in tune with the details that the markets provided us with and with what we described in today’s first alert. Today’s session was 2 days after the triangle-apex-based reversal for gold and gold stocks and 1 day before the analogous reversal in silver. Consequently, the odds for a reversal were very high and it seems that we have indeed seen a reversal today.

Today’s candlestick pattern for the GLD ETF is almost a book example of a reversal. GLD opened higher, rallied to the previous high and then moved back lower - almost to the opening price. We don’t have the final volume reading for the entire session, but based on the data that we have right now, we already know that the volume is huge. As a reminder, reversals are only valid, when they are accompanied by big (or at least relatively big) volume. That’s exactly what we’re seeing today.

The reversal can also be seen in case of the SLV and GDX ETFs. The latter is above its opening price, which may seem bullish, but please keep in mind that miners just failed to move above their 50% Fibonacci retracement (based on the January - February 2018 decline), while gold moved to the previous 2018 high. It seems that mining stocks performance is still weak compared with the one of gold, which continues to have bearish implications for the entire precious metals market.

So, all in all, the outlook remains bearish. Since we saw a clearly visible reversal today, practically right between major reversal dates, it’s now very likely that the decline will start shortly.

As always, we’ll keep you - our subscribers - informed.

Thank you.

Sincerely,
Przemyslaw Radomski, CFA
Founder, Editor-in-chief, Gold & Silver Fund Manager

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