Tuesday, April 15, 2014

Gold Miners-Gold-Silver Update- All eyes on RSI

Recently (11/04/14)(http://goldenopportunitytrading.blogspot.co.uk/2014/04/goldsilvergold-miners-update-silver.html) we suggested that both GDX and gold probably have to go another leg down that apparently started for GDX last Friday and for gold today.As we can see from weekly charts RSI is approaching its trendline support.













If RSI(weekly) holds above 42 and 43 respectively then this down leg may bounce at 22,3$(GDX) and 1250$(Gold)(green arrows).On the other hand if RSI breaks down the IHS(inverted head and shoulder) scenario is dead and the targets are 20,65$(GDX) and 1200$(Gold) (Red arrows).







































We believe that if miners and gold cannot hold 22,3$ and 1250$ respectively then reversing at 20,65$ and 1200$ will be difficult and they may move towards 14,5-15,5$ and 1065$ respectively.

We think that if gold and GDX bounce at the green arrow target then Silver will stay above 19$(green pathway).If gold and GDX go towards red arrow target then a breakdown of silver price under the long term support of 19$ and a move initially towards 17,5$ and then 14,5-15,5$ is very possible

So if something is going to lead the way downwards, it will be Silver