Tom McClellan, formulator of the McClellan Oscillaotr and McClellan Summation Index, and publisher of mcoscillator.com, posted this on Twitter today:
“Here is an extremely simple but useful indicator, which I featured last week in my Daily Edition. It says gold prices are making a meaningful bottom.”
The technical picture on the gold chart is improving and Tom’s indicator does suggest a potentially meaningful bottom, but it will need more time to mature. One particular silver chart, on the other hand, looks ready to breakout right now.
A double bottom has formed on the daily First Majestic Silver (AG) chart. The $6.00 level is acting as resistance and it provided support back in August last year. An upper candle close above this level would be bullish. The relative strength index is tracking higher and is above its center line; Chaikin money flow is doing the same.