BRIEF UPDATE ON PRECIOUS METALS (10:30 pm EST)
It is looking more and more like gold and silver are "breaking out" and experiencing a major trend reversal from bearish to bullish. Last week saw a major upward surge in the price of both metals as several resistance areas were broken. Directional momentum in both gold and silver charts is also turning mostly bullish. The lows in gold and silver prices we saw last December may be the long-term cycle bottoms that we've been anticipating for almost two years although that can't be confirmed just yet. Our trading strategy in both metals will therefore now be bullish, and we will look to buy any corrective dips in the current rally. There is a good chance we could get one next week, but there are also some bullish technical indicators suggesting the rally could push significantly higher (which is why we covered our short positions last week). If we do see prices pull back next week, we may go long in both metals. A general target for a correction would be around $1190 in gold and perhaps $14.50 in silver, but there is a good chance prices could go lower. We will watch for this correction to buy, but if the rally gains more strength next week, we may have to wait until the following week (or longer) before it happens. Still on the sidelines of gold and silver.
It is looking more and more like gold and silver are "breaking out" and experiencing a major trend reversal from bearish to bullish. Last week saw a major upward surge in the price of both metals as several resistance areas were broken. Directional momentum in both gold and silver charts is also turning mostly bullish. The lows in gold and silver prices we saw last December may be the long-term cycle bottoms that we've been anticipating for almost two years although that can't be confirmed just yet. Our trading strategy in both metals will therefore now be bullish, and we will look to buy any corrective dips in the current rally. There is a good chance we could get one next week, but there are also some bullish technical indicators suggesting the rally could push significantly higher (which is why we covered our short positions last week). If we do see prices pull back next week, we may go long in both metals. A general target for a correction would be around $1190 in gold and perhaps $14.50 in silver, but there is a good chance prices could go lower. We will watch for this correction to buy, but if the rally gains more strength next week, we may have to wait until the following week (or longer) before it happens. Still on the sidelines of gold and silver.
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