Silver (SLV) appears to have found support at its 2011 lows. There are downside gaps that should be filled to the upside. Silver will encounter resistance around $38. Silver has reached a record oversold level indicated by the RSI and MACD in 2011. This indicated an interim bottom in silver. Monitor the bullish crossover on the MACD which confirmed the already constructive reversal on the stochastic and RSI.
Gold appears to be making a reversal at oversold and long term support levels breaking a 5 month downtrend. Notice the strong volume accumulation as The Fed announces negative interest rates until late 2014. This is bullish for precious metals. In early August through October we advised a hold and urged caution. Since it pulled back it provided two secondary buypoints where we said it is buying time while others preached that the gold and silver market bull market had ended. Now gold appears to be bouncing off our buypoints similar to January 2011 and regaining its 50 and 200 day to the upside. Now the weak hands will come back at much higher prices.
