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.
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