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Precious Metals Update - 5/26/17

xau/yahoo advance/decline line a/d line precious metals stocks mcsum

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#1 fib_1618



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Posted 28 May 2017 - 01:48 PM

Though the May rally in the precious metals was constructive, we continued to see a lack of underlying internal trend support by the XAU/Yahoo advance/decline line, and with the price of silver failing to match the amplitude in the run up in gold, the best interpretation for now is that gold has morphed into a trading range between $1200 and $1300 an ounce. This would actually be good news for the gold bulls for it would suggest that once this consolidation is complete, this pattern base will be used as a platform for gold to rally into the 3rd quarter. Until then, however, trading in the metals will tend to be choppy, if not volatile, with a tradable bottom for investors still scheduled for sometime around early August.


For those who may be interested, the current Precious Metals McClellan Summation Index reading is a +146 after crossing above the zero line on May 22nd for the fist time since March. Technically speaking, we would need to see this indicator move back above the +250 level to change the current intermediate term outlook from bearish to neutral, with a move back above the +500 level to move it from neutral to bullish. Any failure to move back above +250 would likely result in a challenge of the trading range floor at $1200.



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#2 claire



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Posted 28 May 2017 - 05:58 PM

Thanks for the update Fib.

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