Email of the day (3)
"Technical question on gaps
"I notice gold neatly filled its gap at $1419 yesterday [Tuesday] whereas silver did not fill its gap at $35.45
"Do you think that silver needs to fill this gap before it progresses further or is silver's relative strength so strong as indicated by the collapsing gold/silver ratio that it does not need to?
"Is April traditionally a strong month for gold?
David Fuller's view I am not a fan of gap analysis, not least
as most in commodities are due to either low volume or a lack of 24-hour coverage.
Since gold and silver
futures are traded around the clock, Fullermoney's trading day commences with
Asia, then Europe and concludes with USA trading. This includes after-hour trading.
For more
on gaps, please use the 'Search' facility listed in the menu shown upper-left,
fourth item down. You will find 37 prior entries, many of which will deal with
gaps on charts.
I
think silver will remain the strongest precious metal until demand is temporarily
exhausted, at which point it will suddenly become the weakest in its sector.
Therefore I would not trade it without a trailing stop.
Bullish
seasonality for precious metals can extend into 2Q but I would not count on
it. Meanwhile, gold's medium-term uptrend
remains consistent but the next USD rally or stock market setback would provide
a headwind.