E Gold And Silver Are Heading Into Significant Opposition

Gold and Silver are heading into significant opposition in the timing band that could produce a high. If correct, then prices could top within the next 1-3 trading days.

Stocks enjoyed some upside follow-through today, it looks like they put in some sort of a low. I’m not sure how important yesterday’s bottoms are in the broader sense. It will be telling to see how prices finish the year.

Gold - Prices are approaching significant resistance ($1292-$1310) going into the 30-day timing window. The odds favor (at least) a short-term top within the next few trading days. A sustained breakout above $1310 would imply that a more meaningful breakout in gold is unfolding.

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Silver - Prices are approaching critical resistance and the 200-day MA. If we are going to get a similar result as the May/June cycle, then prices should top within the next 1-3 trading days. I’d be more apt to believe the breakout if volume popped as prices broke through $15.00. It was mediocre and has been trending lower since early November. Closing below $14.85 would signal a breakdown.

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GDX - Miners are running wild and nearly impossible to trade at the moment. One day they look ready to explode higher – the next day their down in spectacular fashion. We often see this type of thrashing approaching a change in trend. If gold and silver top in the next few trading days, then miners should also be at or near their cycle peaks.

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GDXJ - Junior’s are at critical resistance. If this is an ABC flat, then prices should top around here and decline to the buy zone. If the bullish scenario is playing out and this is a double bottom, then juniors need to pop above the 200-day MA and close progressively above the August $30.55 gap.

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SPY - We got some proper follow-through to the upside and prices formed an official swing low. It looks like stocks are at least bouncing. It will take some time to figure out how important the recent low is.

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