Technically Precious with Merv

It looks like a top forming in gold. Caution ahead although the possible top is based upon very short term action so even if the top materializes it might not last long.

NO COMMENTARY TODAY

It’s just too darn hot to do any thinking so I’ll forgo the usual and just post the short term chart and Technical Table. Long term readers of this commentary should be able to guess where we are and project what to expect.

Just one comment, I see that media commentators are highlighting the lack of “quality” gold stocks following the lead of gold itself. The suggestion seems to be that the “quality:” gold stocks should be ready for a rally following that of the recent gold move. As I have often mentioned in these commentaries, the stocks are very often leading not lagging indicators. It just might be that gold will end its rally and follow the stocks into a listless market, but who knows?

SHORT TERM CHART

Well, that’s it for this week. Comments are always welcome and should be addressed to mervburak@gmail.com.

By Merv Burak, CMT