We knew it was coming, so let’s talk support. Warning: These charts contain images of graphic cartel smashings that may not be suitable for all viewers…
Reversal in the making?
Maybe the cartel finally pushed too hard?
I’m not counting on it.
We’ve still got the 10:00 a.m. EST prep-work to deal with, and 11:30 a.m. pressure.
So we’ll see.
For now, let’s talk support.
It’s never easy to watch the smashings, but there are limits to the pain.
Let’s see where those limits may be.
First with gold:
There’s whole number and major support around $1300.
The problem is two fold: Markets still don’t open until 9:30 a.m. EST, so the cartel can take advantage of a thinner market. Then, we’ve got Fed Head Jerome Powell in Part II of his Semi-Annual Congressional Love Fest otherwise known as Humphrey-Hawkins testimony.
The point is there’s still plenty of time to smash.
If they smash the price below $1300, then the next major support we are looking at is around $1280. That is below the 200-day moving average.
Sure, I get it – “but Half Dollar, the 200-day moving average is support”.
But believe me, if they can blow through the stops and get it smashed even lower, they will.
Next up is silver:
That chart is turning out to be uglier than my first girlfriend, and she was a hideous thing.
We’ve basically lost support of $16.25, so let’s look for support to hold at $16.
But wait, there’s more!
How nice of the cartel.
You see, why stop at $16 when you can really crush sentiment and throw up a 15-handle?
Which is exactly what I think they’re gonna try and do.
The support we would want to hold is $15.75.
Not to be a Debbie Downer, but if we drop below $16.13, which it looks like we will, then that will paint a lower-low on the chart with a bearish trend from the peak at $17.70 on January 25th to the low of today.
$17.70. Reminds me of that Flock of Seagull’s song.
$17.70 seems like we ran so far away from it right now.
So without further ado:
It’s up to it’s 50-day just as expected, and it’s got resistance at 91.
Even everybody’s favorite carry-trade, USD/JPY isn’t justifying the moves down in gold & silver:
Which is one of the tell-tale signs that this is nothing more than some good old-fashioned, sentiment busting cartel smashing.
It won’t last forever.
– Half Dollar