I like gold here as an investment going forward I just liked it a whole lot better a few weeks ago. I think we at the top of this wedge formation and due for a pullback and the RSI could come back to the previous high around 50. That would be very constructive and bullish allowing this metal to bust through 900 on it’s next run. While I don’t have a specific price target for where I think it will correct to, the 20-day moving average seems like a reasonable guess.

Obviously if tensions heat up in the middle east this could fuel another rise in gold and all bets are off. However I’ve learned in the past not to underestimate gold’s ability to correct quickly so I took my profits on Friday and will enter on a pullback. I wanted to be flat going into next week as anything can happen when all the fund managers get back from vacation.

gold

Silver has been up 6 straight days and is fast approaching resistance. I would rather it pause here and gather some strength to possibly break through the 11.75 area instead of shooting straight up using up all it’s firepower. Use any further strength to unload positions and wait for a pullback to add or establish new positions.

slv

5 Responses to “A Glance at Metals”

  1. Headlinecharts Says:

    Hi, I completely agree. This next pullback in gold and silver is probably the time to start accumulating. Plus the shares have been outperforming which is also a good sign for the metals.

  2. Martin Says:

    Hey,

    Asked you at the perfect time yesterday and thanks for the advice…with this drop, what do you think? Or still wait a pullback?

  3. Jeff Pierce Says:

    I'd wait. The fact that I didn't buy any today tells me all I need to know. All the intraday charts are pointing down. I'd like to see them fall for a few more days and base. When they appear poised to move up is when I'll get interested.

    Oil is looking way more attractive right now from a trader's perspective.

  4. Martin Says:

    Jeff,

    Do you mind sharing what do you see that is attractive in oil? Wouldn't oil be due for a pullback after its been up so much the last few sessions, DXO is almost at 50 dmv. Thanks.

  5. Jeff Pierce Says:

    I just see many oil stocks breaking out of consolldations on high volume. Take a look through my .Beta watchlist to get some ideas as those are the exact charts I'm looking at.

    I'm not chasing these stocks as I'm going to be watching for a pullback as they are overbought as of today's close.

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