With both gold and silver ETFs trading in heavy volumes last week, technical analyst Jack Chan suspects liquidation is occurring, and speculates that the upcoming Brexit vote could impact the U.S. dollar.
The gold ETF (SPDR Gold Shares (NYSE:GLD)) produced an outside reversal this week on very heavy volume, suggesting liquidation.
The silver ETF (iShares Silver (NYSE:SLV)) also furnished an outside reversal on very heavy volume.
USD is bound by support and resistance and is destined to break one way or the other soon.
Summary
Much will depend on the dollar, as the Fed's announcement this week did not cause a break one way or the other. Perhaps Brexit will next week. The outside reversals on GLD and SLV were on very heavy volume, and that suggests liquidation. Caution is advised.
Jack Chan is the editor of simply profits at www.simplyprofits.org, established in 2006. Jack bought his first mining stock, Hoko exploration in 1979, and has been active in the markets for the past thirty seven years. Technical analysis has helped him filtering out the noise and focusing on the when, and leave the why to the fundamental analysts. His proprietary trading models have enabled him to identify the NASDAQ top in 2000, the new gold bull market in 2001, the stock market top in 2007, and the US dollar bottom in 2011.
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