Volatile Metals With Indices Overbought

Markets and stocks reached very overbought readings this past week.  Consequently, they are now setting up to either to consolidate and move higher, or move lower. Both scenarios should work off the overbought condition.

The metals rested, then shot back up in very volatile, unpredictable action…so let’s check out the levels I’m watching in the metals this weekend.

Gold lost 0.96% after a volatile week. Above $1,240 would be positive while under $1,200 would be quite negative. Ideally, we range between those two levels for a couple or few weeks -- and that would be a nice platform to move higher from.

Silver fell 2.75% as it chopped around between $15.75 and $15.25. A move above or under those two levels would be positive or negative, respectively.

I’d prefer to see silver chop around for a few weeks. However, the action is looking more and more like a major low may be in for the precious metals…but I’m not quite ready to declare that yet.

Platinum lost 1.79% this past week. However, it’s holding $940 support for now. $920 is also a support level while a move above $960 would be very positive.

It‘s all up to gold and silver where platinum goes -- and I do watch and talk about them daily in my daily letter to subscribers.

Palladium lost a hefty 4.45% this past week and looks to be breaking below the rising channel now. Support sits at the $490 area so that should be as far as palladium drops if gold and silver do continue to chop around.

It continues to be a tough year but big money can be made quickly when the right setups form.  Therefore, we wait for them, although, I’m heavily short right now, but that may not last long.

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