- MARCH 3, 2009
Gold and Silver
Another step in the typically long post-bubble bull market
Technical observations of RossClark@shaw.ca
Mar 5, 2009
At today's low Gold is down $100 from its February high and silver is down over two dollars. Both have RSI(14) readings in the mid 40's and our summation index is registering the deepest oversold reading since October. For the most nimble of traders this should provide an opportunity for a quick $40 gold rally and a similar move in silver.
Subsequently, the next sustainable rally should evolve once prices have 'tested lows' that produce a higher low in the RSI and bullish divergence verses the mining stocks (see the 2002 and 1994 examples that follow).
(Click on images to enlarge)
Previous megaphone patterns in Gold
March 3, 2009
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