Precious Metals Update
If you are a sub and have been paying attention then you ought to be short both gold and silver right now. In the past week I have repeatedly been pointing at both charts suggesting that PMs were coiling up ahead of a big move. Today may have been the beginning of just that, let’s observe:
Quite frankly that sideways triangle on gold was pretty tough to miss. We had been bouncing around the tip driving everyone crazy – and that’s usually when I start to pay attention. The lower trigger line was breached today and gold has descended to its lower 25-day Bollinger.
Now, it’s still early in the game and thus be prepared for the possibility of a last kiss goodbye reversal – or even worse a push back to the upper trigger line, which would qualify this as a fake breach. It’s all part of the price of admission – always be mentally prepared and don’t let your emotions affect your trading.
Yes, I know easier said than done – it’s an ongoing project. When you become a trader you automatically join the A.A. – the Affectus Anonymous – you can never really cure the disease and we don’t have a twelve step program. Heck, maybe I should come up with one? 😉
On silver we had a slightly different pattern but we expected the upper resistance line to hold up. I was suggesting a short position at a breach of that 25-day SMA, which happened today. If you’ve been hanging around here for a while you may also have followed the 25-hour SMA on the left panel which was suggesting a move was in the making.
Here’s a little freebie from the equities side – AAPL is once again testing its 25-day SMA and I’m short here with a stop a few handles above. After a stop out I would not be long unless it manages to climb above the coveted 500 mark.
More charts and non-biased commentary below for anyone donning a secret decoder ring. If you are interested in becoming a Gold member then don’t waste time and sign up here. And if you are a Zero or Geronimo subscriber it includes access to all Gold posts, so you actually get double the bang for your buck.
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This entry was posted on Monday, February 11th, 2013 at 2:01 pm. Both comments and pings are currently closed.