Using the 3 Line Break chart you can easily see that Gold and Silver are both in intermediate bearish trends while the primary trend remains bullish. Only be long these sectors if you are daytrading until we print a white candle on these weekly charts and momentum turns up. One very positive aspect of these charts is the RSI on both, which remain above 40.

If these sectors do suffer a more serious correction, which is too early to tell at this point, then below are my targets for what would be a great long term buy.

  • Gold: $1435
  • Silver: $21

8 Responses to “Mildly Bearish On Metals”

  1. Rajesh Says:

    I feel if any one tries to over read and overdo technicals, they always hit back at you. Silver by touching 26 went thru a 50 percent fib retracement from it’s rise from 5 to almost 50. It did a double bottom of around 28.from there on we r having a simple fovemation of gradual higher bottoms n slow higher tops. Feel it should be around 40 by the year end. If 28 breaks, then momentum could shift swiftly downwards. But let time decide! I believe in taking one step at a time! Thinking of 21 or new highs is like shooting darts in the dark right now!

  2. jeff pierce Says:

    Rajesh,

    I do have a method to my madness Rajesh and I do try to live in the moment.

    Bernanke is a moran..there I said it. He has done a wonderful job of enslaving future generations.

    I am also seeing nothing that supports a bull case at this time…but I could change my mind if things improve technically.

  3. Rajesh Says:

    Am bullish on us markets overall. Personally looking at 13 k on Dow by year end. Hav been bullish for a long time now as stated in my earlier comments posted. Feel bernake has done a fantastic job sitar, orat least a wise job.

  4. Steve Says:

    Rajesh, better to respect technicals then to underestimate the story they attempt to tell. They’re not always right but due provide a better probability for making the right trades. Why are you bullish on the U.S. markets – is it a technical reason as I don’t see how fundamentals can be giving you a warm and fuzzy feeling?

  5. rajesh Says:

    steve,
    of corse it is based on the technicals. i try and keep the technicals as simple as possible based on my understanding of them.hav been bullish for a time now and continue to be bullish. in fact, quite bullish. eventually by march 2012 see dow feel dow could cross 14k. dow did not enter a bear market in the recent correction and has been a very bright spot in the world markets,in terms of overall performance. am very bullish. of course volatility and corrections are part of the game. for me it is a buy on any good dip .

  6. jeff pierce Says:

    what would it take for you to be bearish rajesh?

  7. rajesh Says:

    jeff., the recent dip which happened to 10600 odd in my opinion was a double bottom. and just above entering a bear market defined in terms of a 20 percent correction from the highs. i would be very bearish if dow breaks and closes below 10360. feel if that happens we have a fall back to 6500 on dow. sounds crazy but thts my reading. would be very alert if dow closes below 10600, which is a close double bottom. till then i remain very bullish with targets of 13000 and 14000..have been posting about a bull rally for the last few months and maintain my view. 10600 was a brilliant point to buy in the last crack at it had multiple support areas around it

  8. rajesh Says:

    silver could rally to around 40 before a serious correction? any views?

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