A Telling View Through Gold and Silver ETF Charts

by Michael Noonan, Edge Trader Plus The changes going on in the world continue to accelerate, but changes that directly relate to gold and silver are hard to find and correlate to developing price activity. This was addressed in the first two paragraphs of last week’s article, Forget The News, so there is no need to repeat how fundamental news is not driving price. None of the fundamentals are reliable for market timing, charts being preferred for that aspect, and even the charts are not indicating the “when” will gold and silver embark on a change in trend. With an overload of news events, a shorter read of what is going on in the markets via the charts makes more sense. This week, we take a look at ETF charts to see if/how they may be helpful for clues in reading the futures gold/silver charts. The net effect is how the ETFs can be used as a tool to confirm the futures charts at/near turning points like swing highs and lows. After a review of silver, there are six ETF-related charts with some short observations, followed by gold and eight gold ETF charts The takeaway on weekly silver is a lack of defining activity that indicates the bottoming process is ending. Simply put, there is none. The greater ease of market movement is still on the downside. We call it EDM [Ease of Downward Movement], and the direction of most ease of movement is with the trend. In an up trend, there would be EUM [Ease of Upward Movement]. The EDM, 3 bars ago, is an alert to see how the market responds, either with more ease of movement lower or a lack of follow through, for both convey market intent. The two weeks following show an inability for buyers to overcome efforts of the sellers, especially when the reaction rally stopped cold at resistance. Looking at the markets more from a logical perspective, it is easier to avoid the “noise of the news” that has no lasting impact. SI W 14 Feb 15 While it appears price is putting in a better show on the daily chart, Friday’s rally gets lost when compared to its net effect relative to the S/D bar [Supply over Demand] on a significant increase in volume at the end of January. When you think of volume as a source of energy driving the market, compare the next 11 TDs and consider how all of that effort failed to negate the S/D bar. It is hard to be enthusiastic about Friday when put in that context. Continue Reading>>>

Sharing is caring!