After the price of gold made a new high last Monday, it sold off and its ETF, GLD, dropped from a price near 185 to just below 166 in less than 3 trading sessions. Looking at the 30 minutes price chart for GLD, it shows the price moved below the 167.50 support level briefly. In the last trading session, GLD moved back above the previous R&S level near 175 and held above its 5 day SMA. If GLD continue to move up and break above the 181.60, it has the potential to make a newer high. But if it hit resistance between 175 and 182, lookout for a possible H&S pattern that could lead to lower prices.
GLD:
SLV:
Silver retraced along with the sell off on gold. The price of its ETF, SLV pulled back and filled the recent up gap and held above the 50 SMA. The daily price chart showing it could be getting ready for another move toward the 43.55 resistance level and possibly toward making a new high. The key support to watch for SLV will be its 50 SMA and the resistance level to watch is 43.55.
Unless GLD forms a head & shoulder pattern in its 30 minutes chart and SLV breaks below 50 SMA, the short term trend bias for these two shining metals is up.
