September Brought A Bearish Reversal For Gold & Silver (GLD)
From Chris Kimble: Below looks at Gold and Silver patterns on a “Monthly basis” over the past 7-years. The rally in Gold and Silver since early 2016, has taken both of them back to test levels that were heavy for each of them over the past few years.
Joe Friday Just The Facts Ma’am– Gold and Silver created “Monthly Reversal” pattern this month at each (2), just under key overhead resistance at (1). These monthly reversals are the largest monthly reversals for both metals in the past few years.
One-month reversals at resistance in time could be concerning to Gold & Silver bulls. A one-month reversal pattern doesn’t prove that the 18-month rally is over. The reversal pattern could be something to pay close attention too, since Gold and Silver traders have created crowded bullish trades, as resistance tests are in play at each (1).
Metals bulls would LOVE to see both break out at (1). If you would like to stay abreast of these patterns in Gold & Silver, we would be honored if you were a Premium or Metals members, as we keep both of them updated each week on these patterns.
The SPDR Gold Trust ETF (GLD) closed at $121.58 on Friday, down $-0.63 (-0.52%). Year-to-date, GLD has gained 10.92%, versus a 13.43% rise in the benchmark S&P 500 index during the same period.
GLD currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #1 of 36 ETFs in the Precious Metals ETFs category.
This article is brought to you courtesy of Kimble Charting Solutions.
