May 11 Update

What a monster day in gold and silver! GLD broke out of both the established trend channel and the accelerated trend channel, and closed way outside of the Bollinger band. The all time high was taken out out by more than a dollar. We are now sailing in open water with no chart resistance remaining. Now we must deal with technical indicators only to signal likely areas of resistance and support. RSI is now peeking up above 70 and is technically over-bought. If you look back to the Nov-Dec time frame, you will see that RSI stayed over-bought at higher levels than today for quite some time. Taking profit is OK or staying pat, but I would not be buying here. Stochastics remain embedded indicating further strength. Gold is now responding to market forces as a currency. This is a possible indication that we have entered the final phase of the gold bull market, which will end in a manic shot into orbit and beyond.






SLV hurdled resistance and gapped up on a huge move.  Since the bullion bank cartel attempted a smackdown last week, silver has gone vertical.  Silver is a rough ride and can break your heart or make you giggle like a school girl.  We are back into the heart of the trend channel and still below 70 on the RSI, a positive development that leaves room to run further.  The entire candle sits out of the Bollinger band!  Don't be surprised to see price come back in.  Volume was exceptional.  If I were guessing, silver is going to take off here and head to the next layer of chart resistance.  The weekly shows resistance at 19.11, then the all time high awaits at 20.73.  A gap up breakout on high volume could indicate that this run is going to be something to see.  If so, look for another gap somewhere in the future at higher prices.  That will be the mid-move gap!  The third gap will be the blowoff gap and it will be time to get out.  








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