
Precious metals are once again attempting to form a bottom. Both gold and silver have traded sideways to up for the last two or three months and have had Twitter sentiment increase during the move. It is encouraging to see that sentiment got oversold even as price formed higher lows early in the bottoming process. Many tweets were full of predictions for lower lows and a continuation of the down trend (hopefully shaking out weak holders). For SLV specifically, 26 was a critical level that traders believed would not hold. The next touch on the lows or the newly established up trend lines was met with significantly higher sentiment readings as investors started to believe that the danger was past. SLV has broken a short term down trend line while GLD has broken out of a short term triangle pattern. Both ETFs had sentiment confirm the break to the upside. Most important to us is that GLD and gold stocks have risen to meet a long term down trend