For all you doubters out there, yes I have out my pompoms on the move in gold and silver this week. You scoffed in March when I said a right shoulder could be formed. Then again chuckled in April and May 3rd but I ask you who's laughing now? Already I'm seeing tweets of a possible H&SB and I'm comfortably long SLV calls, enjoying the sunshine. Scoff all you wish you financial gurus. Charts don't lie; people do.
This daily for GLD and SLV is intriguing, showing both breaking out of falling wedges (they should test support which would be great to get in or add more shares or calls).
Gold seasonal demand doesn't actually kick in until late Summer for festival season in India, unless you're a believer of getting in early. Silver does see some season demand in the Summer due to coin manufacturing BUT these two could also be signalling some fear in the equity market topping. Of course this could also be nothing more than short covering (inflation hedge?) but it is what it is Bullish. The weekly charts below show definite divergence and GLD appears to be forming a higher swing low here. Obviously I'm not the only one buying here. The H&SB thesis is being replaced with double and triple bottoms but silver broke it's 3rd trend line from the 2011 high and adds to my conviction. Many a trader believes you buy the break of a third trend line. My buy signal was triggered based on the divergences. Yes, this requires a leap of faith however your stop would be below this last swing low for great risk/reward overall. I am long SLV Sept19 calls and will be adding gold next week.