Gold looked a little scary this morning but by the end of the day was only down a fraction. I do like how gold is drifting sideways outside of the down channel it has been in for most of this year.
On the technical chart, gold is drifting along the 18 day moving average, which is supplying support at this time. The stochastic is in overbought territory, so least ways how I look at the chart, gold is parked in NEUTRAL trying to find direction.
Silver got whacked today and yet nothing too exciting.
The stochastic has turned negative and silver is below the 18 day moving average both of which are indicators of lower prices. However, the lower Bollinger band is rising just a bit and should offer support.
The miners hit the upper Bollinger band last Wednesday and have been drifting lower. The stochastic is coming out of oversold territory. If the miners do go lower, the 18 day moving average provides initial support. I would not be surprised to see the miners drift down towards the 18 day moving average over the next few sessions. Any upside action may be capped by the Upper Bollinger band.
With some of the big moves in the Stock Market today, it is not surprising that gold is drifting. Gold lives on the FEAR trade, rising stocks means NO FEAR.
I remain a big fan of physical silver in your own possession.
Do you like the photo? I played around with the filters for this one.
Peace out and Stack On!
