Wisdom Wins With Gold And Silver

A mere week has passed since we penned "Gold Looking Lower Near-Term" such that we instead find its price +0.9% higher in settling Friday at 1571, Friday's low-to-high run alone being +1.3%. That stated, must we nix our near-term notion for lower Gold? No, given our nestling in with the negative fallout of our favored "Baby Blues" as we again go straightaway to their current stance, (or at present, inability to stand):

And you regular readers know the drill, the above two-panel chart showing us the daily bars from three months ago-to-date for Gold on the left and Silver on the right. The blue dots of trend consistency in both cases having peaked above their respective +80% axes -- and now being in free fall -- is a proven, traditional, technical harbinger for price to succumb to at least recent prior structural support as denoted in red for Gold at 1521 and for Silver at 17.42. Of course as we disclaimed a week ago, such prognostication comes to fruition a majority of the time: there is the odd exception. Moreover, as we're seeking Gold 1675 during this year, we'd initially view any near-term pullback as but a pause by which to refresh, (barring Gold's more broadly falling out of favor for whatever shorts-concocted, bitcoin-biased, unsubstantiated excuse up with which they'd come).

Speaking of "up", notably have an above glance at Silver's rightmost bar: that low-to-high +2.3% run on Friday was a loaded leverage payday for the likes of miners such as Pan American Silver (PAAS) which from its intra-day low of 22.12 went on a +5.3% run up to 23.30; a tip of the cap for that to a valued reader and their "sell into strength" trading wisdom. 

 Or if you prefer hitting triples, Silver itself for the week (low-to-high) gained +3.2%: said stock +11.4%. (Further still from the esoteric futures pit, the week's low-to-high gain on Silver's "initial margin requirement" was +46.7% --- "What's in your algorithm?"

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