Precious Metals, Miners Making Waves and New Trends
Metals could start to rally this week or in a few months. The best thing to do is wait for a reversal to the upside before you get active.
Silver Price Chart – Daily
Silver remains in a long term bull market much like the monthly chart of gold. Silver continues to work its way through a large bull flag pattern with a positive outlook at this time.
Silver Miner Stocks – iShares Silver Trust ETF (NYSEARCA:SIL) – Daily Chart
Reviewing the precious metals sector, it seems that silver miners have the best-looking chart. All price patterns are showing strength and are in proportion to one other. If this chart plays out to what technical analysis is pointing to then we could see the precious metals sector put in a bottom and rally within the next week or two. And if this is the case then silver miner stocks should provide the most opportunity going forward.
Precious Metals Trading Conclusion
In short, what you need to focus on is the yellow consolidation box on the monthly gold chart. A breaking in either direction will trigger a massive move that should last six to 18 months. Until then long term investors can simply sit back and watch the sector while they put their money to work in other active sectors.
From a short term trader's point of view... I am looking for a signs of a bottom on the daily chart to get my money working earlier to play the bounce/rally that takes place and actively manage the position until a breakout occurs. The charts overall are not that clear as to when a breakout will take place. Metals could start to rally this week or in a few months, and all we can do is wait for a reversal to the upside before we get active.
Knowing the big picture trends and patterns at play along with major support and resistance levels (breakout levels) is crucial for success and peace of mind.
Editor's Note: Chris Vermeulen offers more content at his sites, TheGoldAndOilGuy.com and Traders Video Playbook.
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.
Daily Recap Newsletter