Friday, June 27, 2014
Let's look at GDXJ and SLV before the week ends
Red volume has been larger than black volume for the past week, which kept me from staying in the juniors. I dunped most stuff in the past 2 days, just have warrants left.
Now it turns out we're printing another red outside candle today. And it's breaking through the EMA(8), which was support throughout this rally. It better not keep going down.
The Bollinger mean is at $38 right now, which coinkydinkilly is where the weekly SMA(50) is. So a break of $40 might just mean a pullback to $38.
That is, as long as silver doesn't decide to pull back too:
GDXJ only looked good because silver wasn't breaking down. What happens if silver breaks down? Ouch. GDXJ will look significantly less good.
"Hyuk hyuk", says mister silverbug, "silver's not going to break down!" Really? Do you honestly think this chart can maintain a RSI of 80 forever? Volume is dwindling, and the price is really overextended because of a single piece of bullshit on June 19th that we already knew about.