Precious Metals Remain Solid

Stocks took a major hit on heavy volume selling early in the week, which forecasted more selling to come. But it didn’t come. Instead, we ripped back higher.

Although we’re not yet out of the weakness woods, heavy volume on the move higher into the end of last week is good action to be sure.

I just can’t comprehend heavy selling that only lasts one day. It’s got to be computer driven action since humans do not react this way. To be sure my fragile emotions can’t handle such major weakness that so far seemingly only lasts a day. It just doesn’t add up.

Anyhow, I’ll dive deeper into the general market and stocks in my blog and Trade Ideas Letter for subscribers.

As for precious metals, they continue to point to higher prices…so let’s take a look.

Gold rose 2.11% this past week and looks good for higher still. Gold moved nicely past the moving average cluster around $1,245 -- and is holding that level…in addition to building a small bull flag, which points to higher.

As long as we remain above the $1,245 are on a closing basis we’re looking good. We should see a move up to the $1,300 area before we see any real resistance.

Silver was a bit wild, but ended the week positive to the tune of +2.40%. The $1 range this past week is pretty wide but should soon lead to a nice move higher back to $18.25, then $18.50.

$17 is the breakout area and should be bested in the coming week, or chances of failure increase exponentially.

Platinum gained a respectable 2.47% and looks set for a nice move higher. This little rest area under $950 looks great. If we can best the large downtrend line, which now coincides with horizontal resistance at $950, we should be on the way to $990 in short order.

Palladium fell a hefty 5.33% and looks to have a little more downside in its near future. I’m a bit surprised to see palladium fail after looking fine. The failed breakout in early May was the tell, as it often is. Failed breakouts often lead to weakness, but not always. Moreover, I did think palladium would be fine in a rising gold environment. Obviously, I was wrong.

Looks like we will test the $740 support area near the 200-day moving average where we should be looking for a turn in the chart.

******** 

In my free, nearly weekly newsletter I include many links and charts which cannot always be viewed through sites which publish my work.  If you are having difficulties viewing them please sign up in the right margin for free at www.wizzentrading.com or send an email to [email protected] with “subscribe” as the subject and receive the newsletter directly in your inbox, links and all.  If you would like to subscribe and see what my portfolio consists of please see here.

If you found this information useful, or informative please pass it on to your friends or family. 

Free Service

The free weekly newsletter “Wizzen Trading” does not purport to be a financial recommendation service, nor do we profess to be a professional advisement service.  Any action taken as a result of reading “Wizzen Trading” is solely the responsibility of the reader.  We recommend seeking professional financial advice and performing your own due diligence before acting on any information received through “Wizzen Trading”.