Metals Need Sideways Consolidation

I haven’t written in a while…as sometimes it’s just nice to step back a bit, especially if not much is going on. I also was on a much needed vacation down to the southern US on my bike. What a time!

Stocks showed strength, while I was away…but have hit resistance levels and are now moving lower. Whether this is just another normal move down to support areas or a major bear market kicking off, I do not know. Nonetheless, I’m looking for short positions now.

Consequently, I’ll be locking in gains quickly at support areas…since that’s just the type of market we’re in at the moment.

Gold gained 2.39% this past week, but needs time to complete this potential Cup&Handle pattern.

Friday, I noticed many miners were showing weakness. It should be noted they often lead the metals. Therefore, I’d be lathe entering a gold position right now.

Silver gained a solid 5.41% this past week -- and is also setting up a nice pattern for a breakout higher in the next two weeks or so.

Miners are telling me silver won’t do much on the upside in the near-term. However, the dominant trend has changed from down -- and is turning to up very nicely.

Great recent action from silver. However, a few weeks of sideways price action would be best.

Platinum gained just 0.48% this past week -- and is up against a descending trend-line now. Looks like we will see some consolidation or a move down to the $940 area now, where the 200-day moving average sits.

Palladium lost 1.78% on the week -- and isn’t looking good. Palladium looks set to break below this ascending channel anytime now -- and may test support at $530 then. Below that is support at $510.

I hope you enjoyed your weekend and are being very cautious and quick in this general market with no direction.

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