Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Mini-Metal Monitor: Precious Metals Not so Precious?


...something is not right in the precious metals arena...

We cannot shake the sudden sense that something is not right in the precious metals arena in terms of a sudden shift in the technical picture, which suggests that near-term exhaustion may become an issue.

Focus on the short-term charts seen below (both of these charts are published daily, in our full-blown Metal Monitor report). Indeed, the Intraday and the Swing Chart for spot Gold both strongly suggest that a downside penetration of the $564.80 level basis the spot price would be a serious near-term technical negative. Moreover, such a move would likely lead to a broader downside correction, via a violation of the uptrend line.

A correction back towards the $540 area cannot be ruled out, sooner rather than later, as we also shine the technical spotlight directly on our momentum Oscillator, seen in the Hourly Chart of spot gold. We observe significant bearish divergence and now a tilt into the negative column on an outright basis.

Danger: The trendline is giving way and a downside violation of the most previous short-term low of $564.80 would complete the near-term 'correctively-bearish' breakdown, and, would target as low as $539.

Our Swing Chart reveals a mini-head-and-shoulders type topping pattern and a threat to the uptrendline that dates all the way back to when Gold was trading below $500. A trade of $564 completes the Swing Chart breakdown pattern.

We remain bullish, longer-term, but are tightening stops dramatically.

We are offering a special free trial subscription to the Metal Monitor to all Minyans. Simply e-mail us at the address below, and put Minyan-Offer in the subject line.

This letter is an excerpt of "The Metal Monitor", and has been reproduced with the full authorization of its publisher. For information about subscribing to macro-market research services, including "The Metal Monitor,"
< Previous
  • 1
Next >
Position in gold
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Featured Videos