Friday’s moderate rally triggered a ‘mechanical’ short at 5033.50 that I am not recommending. The signal is a weak one because the bounce came off an intraday low that felt unthreatening. The signal is also divergent from a stronger signal in Silver that triggered earlier in the week and which is already profitble, albeit only slightly. My gut feeling is that a bullish breakout in Gold will settle the argument, but we’ll wait for this to happen rather than jump the gun. If Silver wins, that would portend a fall in this vehicle to as low as 4700.60 in the week ahead.
GCJ26 – April Gold (Last:5063.80)
