Great Looking Precious Metals Charts

I’ve had mixed results trading gold stocks in the past but those stocks have some of the best looking charts in the market pointing to higher prices very soon. I’m not going to speculate on why they're rising when you consider how much money has been printed by the US and the inflation/deflation debate, but the fact is, they are rising and have the right price/volume action you want to see for near term price appreciation.

While I am near term cautious on the overall markets, I do have a buy signal on the gold/silver stocks as they have the capability to rise even when the general markets are falling.

While SLV didn’t rebound like the individual stocks in the silver sector did on Friday, it does look poised to move higher after a retest of the higher trendline of the triangle formation below.

Comments

[Larry House:]

I think it makes great sense to have 10-20% in metals, but I wouldn't bet the whole farm on them. I prefer bullion to the stocks, but they would make sense too.

2008 Dec 22 10:44 AM

[NOWHEREMAN:]

Larry: can't get gold without the miners. The best leverage will be those miners who have high operating costs since they will finally show profits. The safest are those with low operating costs.

Bullion in hand is always better than bullion beneath the Bush.

2008 Dec 22 03:26 PM

[Mousercat:]

I have been buying SLV on the strength of that gap in the 16 neighborhood. Don't know what I'll do when the gap is filled. In the meantime though, a word about the mines vs the metal: the metal stands on its own - a supply/demand play. The mines though are problematic - all of them leverage back and forth in futures to such an extent that even they don't know where they stand, much less you and me. I just like to know what's what and in the current circumstance I can't. I'll just stick with the metal thank you very much.

2008 Dec 22 06:26 PM

[NOWHEREMAN:]

A gold chart and an ETF chart do not make for "great looking" precious metals charts.

Especially when the Gold Chart looks like its at the top of a Channel. And drawing a similar parallel line above the three bottoms for SLV puts it into a similar position.

The time frame is much too short to tell where resistance is. IMO

2008 Dec 23 03:41 AM

[ragnarrr:]

Aitvaras is right on...go out at least 12 months on a daily of chart of GLD and youll see that gold is unquestionable still in a break market and is very much at the upper of it channel..only a break of the lower highs made in March July and Ocotober will push signal a good looking break out. Going out on a weekly chart, this decline from the most recent highs could very well be a bull flag but it MUST break those highs from last week in strong way to start that off. With a good volume break its gonna be ALLLL IN.

2008 Dec 23 11:21 AM