Wednesday, August 24, 2011

Nice follow-thru day

In the morning we rallied, only to turn back to the take-off point near lunch. Price broke out of the formed wedge, with decent volume (see chart below). After some consolidation, we got another nice rally in the last 50 minutes of trading. So all in all, a nice follow-thru after yesterday's rally.

Looking at the daily charts, volume bars on the downday's are remarkably bigger than the volume on the upday's. That doesn't make me a big believer of this rally, so for the moment, I prefer to stay at the sidelines.

Gold and silver got bashed some more, gold down 3.3%, silver 4.4%. Gold is being sold on huge volume, so we might have had our top the twitter-stream was shouting for. Silver also sold off heavy the last 2 days, but volume wasn't that extreme. In fact, silver knew a similar sell-off in the beginning of the month. So maybe silver is going down, only on the negative momentum gold is experiencing.

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