Gold, Silver, and Miners in Stage 1 Accumulation Mode
The market seems to be setting up for some very large moves in 2013. Here's a look at the charts.
The saying goes: “If the market doesn’t shake you out, it will wait you out."
We all know time is money so the above statement makes a lot of sense, doesn’t it? Why would you want your money sitting in an investment that's clearly displayed a large sideways range, with months and possibly years before any significant breakout will occur. There are other opportunities that could generate more gains until the precious metals sector sets up with a high-probability trading pattern.
The good news is that gold, silver, and precious metals mining stocks are forming a very large Stage 1 Accumulation Pattern on the weekly chart. This points to a multi-month rally in prices if they break out above these resistance levels.
Gold and Gold Miner Stocks -- Weekly Analysis
The chart below shows a lot of analysis, and to the untrained eye, it may look messy and confusing, so take your time to review it. In short, what I am showing are sideways price patterns using the previous highs and lows for support and resistance levels. The analysis shows the shift in prices from bearish (down), to neutral (sideways). The exciting part about this pattern is that a new bull market should emerge if my analysis is correct. Now, I’m not talking about 5 -10% move here; I’m talking about a multi-month and possibly a year-long rally in precious metals.
A break above the red-dotted resistance lines should trigger aggressive buying in gold miners along with physical gold bullion.
Silver & Silver Miner Stocks Weekly Analysis
This chart of silver and silver miner stocks (Global X Silver Miners (NYSEARCA:SIL)), shows a very similar pattern to that of its big shiny sister (yellow gold). Silver carries a lot more risk because of its industrial usage. Also this commodity is thinly traded and can move very quickly on a daily basis compared to gold. Because of these quick price movements it has attracted a lot of speculative money, which also has increased the volatility. More often than not silver will move two to three times more on a percentage bases than that of yellow 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.