Gold and Silver 22 June

Maybe, just maybe we are dealing with a new and improved paradigm.  Where MOPE (Management of Perception Economics) does not mesmerize the markets like it used to.  Maybe, just maybe people are starting to believe in what they see, smell and feel, instead of the endless bullshit being transmitted across the Matrix.  Not so long ago after a day like yesterday, we would have seen gold and silver come undone and fall in a waterfall like you read about.  Not so today.  I have to agree with Mr. Dan Norcini that gold put in quite a performance that newbies would not appreciate given the modest price gain.  I have seen gold drop 50 dollars after a day like yesterday!

GLD now shows resistance at the all time high of 123.5 and support at yesterday's low around and the 20 day MA around 120.22.  RSI is mostly neutral and momentum is schizophrenic and illustrated by the boxed MACD area.  It is waffling about trying to decide where it is going. The Bollinger bands are narrowing and that tells us to expect a break one way or another pretty soon.  In previous years, this type of action going into the unfavorable season of summer would suggest a pull back, likely all the way back to the 38.2 Fibonacci line around 115.  I am beginning to wonder if the fear can subside enough for that to happen and what it would take.  I would have to buy on a break above 123.50 and assume 130 plus is in the cards.

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SLV also bounced, but did not do quite as well as GLD.  A solid black candle means the price closed above yesterday's close, but the close was lower than the open.  A hollow black candle says the price closed above yesterday's close and above the open, as was the case with GLD.  Resistance is yesterdays high and support is yesterdays low.  Further support comes in at 17.99, a combination of both the 18 and 45 day MAs.  That should be the target as Stochastics cross the 80 level to the down side.  Silver is going to suffer if the idea of a double dip recession gains traction.  I would not be surprised to see the Fibonacci 38.2% and 50% retracement levels in play soon.  Both those level have prior price congestion associated with them and will act as magnets during a correction.

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GDX has been strong lately but today put in the weakest performance of the three charts by closing lower than yesterday and on the low of the day.  When the broader market gets hit, the mining stocks get punished. this will end someday, but the question is when? Likely it will be when the hedge funds quit gaming the system after getting burned to a crisp. Support is coming in at the 20 day MA around 50.70, resistance just above 54.  Stochastics are hooking and about ready to cross the 80 level, which targets the 20 day MA. That gap is still waiting and will fill at some point.  What a buy GDX would be at that level!  I am a buyer at the 45-46 level.
  
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