BullMarketRun - June 7, 2012The Bullish Big Picture
This morning, we’re taking a broad look at the improving technical picture for Gold, Silver, the CDNX, the Canadian dollar and the euro…what this tells us is that the world is not about to come to an end anytime soon – in fact, at the very least, a strong rally in the markets appears much more likely as summer approaches – precisely at a time when most brokers are hiding under their desks and many investors are or have been too scared to pick up bargains because of mainstream media fear-mongering…
Gold
Gold has broken above its downtrend line and could really pick up steam over the summer like it did the last couple of years, especially if the Fed gets more aggressive on the easing side which seems more likely than ever now…the positioning of the Slow Stochastics in John’s chart below (among other indicators0 confirms the bullish trend…
Silver
Silver is really gathering momentum after becoming quite oversold in mid-May on the 6-month daily chart below…what we’re likely to see now is Silver outperforming Gold like it did during the first quarter of the year…
Important note…the COT structure for both Gold and Silver at the moment is VERY bullish – commercial traders have sharply cut back their short positions to levels not seen in quite some time…this kind of a set-up almost always precedes a major upside move in these markets…
TSX Venture Exchange
Important support has held for the CDNX which closed above the 1300 level yesterday after a 17-point gain on increased volume…a reversal to the upside in the 20-day moving average (SMA) by next week is appearing more certain now which will add fresh fuel to the fire…in short, the CDNX is showing signs it’s about to gain some traction…Gold and Silver should lend some support…
Source: https://www.bullmarketrun.com/?p=10311
Guy