Its another all TA Tuesday here at Planet Turd. Playin your favorite 1-minute, 3-minute and hourly charts!
You all know by now that I firmly believe that TA is currently useless in both gold and silver. The fundos are so strong and the manipulation is so great that TA will lead you astray if you rely upon it. The chartists who utilize daily charts to call tops are simply trying to make names for themselves and garner recognition. Ignore these fools.
However, I do believe that there is value in reviewing the short-term charts. These charts can still, quite clearly, give you an indication of support/resistance levels as well as trend. Anything from 3-hour on down to 3-minute can be helpful. 1-minute charts are only good for spotting the footprints of Blythe and the Flying Monkey Brigade.
OK...with this in mind, I think we are on the edge of a nice pop/rebound UP in our precious PMs. First, look at this 3-hour USDX:
Crude is looking OK, too, and this is significant because more than a few metal algos are programmed to follow developments in the crude pit.
Now look at silver:
So, in conclusion, everything looks good for an overnight and mid-week rally in the PMs. I expect it. However, this comes with the caveat I mentioned above...even my short-term TA can be thrown out the window if Blythe attacks with sufficient firepower to overwhelm the bid and chop price in minutes. Let's wait and see what happens. The key to all of this is the USDX. Watch 81 on the March, which equates to about 80.75 on the cash. The cash USDX is the price that appears on the chart to the right, along with cash gold and silver.
It could be a very interesting evening/overnight. Keep the faith! TF