On July 12, we wrote: "an overshoot to the downside on capitulative selling in the metals sector is extremely common; bottom pickers should expect to have their mental capital tested, even as the signs of an impending bottom pileup."
Prices for gold and silver are now deep into the yellow highlighted support zone we have been highlighting for weeks. Sentiment is even more depressed, price continues to stretch downward, and weekly stochastics are oversold. The price is in a major support zone. Note the Bollinger band crash on the weekly charts in gold and silver, now occurring as well.
Certainly, bulls' mental capital is and has been in the process of being tested. An old adage is that the best time to buy is when you are most scared to do so: Are we there yet?
Thanks and have a great weekend,
