Time For The Gold Bulls To Step Up – If There Are Any Left

news.goldseek.com / By Avi Gilburt / 23 November 2016

First published Sat Nov 19 for members: Two weeks ago, I noted that we had a completed pattern to the downside in the equity market and it was time for the equity market bulls to step up.  And, boy, did they ever. Now, it is time for the metals bulls to do the same.  But, it seems I cannot find them.

Last weekend, I noted that the bulls have gone into hiding.  This past week, they were scared even further into their shell.  Yes, bullish sentiment in the complex has dropped to almost nothing.  For those that review market sentiment readings, you will know that we have almost no bulls left in this market, or at least bulls who are willing to admit it.  That is often a strong indication that we are bottoming, and not collapsing.

I also noted in my last weekend report that, if our pattern was going to hold for potential bottoming in the complex, we would need to see a “bounce” early in the week, which would then likely lead to a lower low later in the week.  The market has followed through quite nicely with this bottoming pattern thus far.

Moreover, the positive divergences we are seeing on all time frames is quite stark and strongly suggestive of waning selling pressure.  If we review the silver charts, we see positive divergences on all time frames from 5 minutes up to daily.  Our 144-minute chart, which has given us the strongest indications of impending tops and bottoms in this complex all year, is strongly suggesting that we are now bottoming.  Will it be the first false signal we have seen all year?  I cannot answer that.  All I can do is work on probabilities and the probabilities are strongly in favor of us bottoming very soon.

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