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By Patrick MontesDeOca

The August gold futures contract had a weekly bullish reversal signal, negating the bearish trend that started early in the week when buyers failed to penetrate the previous weekly resistance levels of 1,597 made July 3, 2012.

This came after a very disappointing meeting of the eurozone central leaders over the weekend, with no clear or decisive plan to resolve a very delicate over-leveraged eurozone economy, and creating a more pronounced worldwide deflationary sentiment by continuing to kick the can down the road.

The disappointing news pushed the yellow metal to a low of $1,554.40 made on July 12. At these levels, we identified major physical buying or the next floor level of support in the cash bullion market.

The short players in the paper market have tried eight times to break the gold and silver market since the low of $1,529 was made on May 16, 2012. That, with less impact each time, and finding more buyers than the selling pressure pulled this market up to end the week for a gain of nearly $28 per ounce.

Let's take a look at some metals stocks and ETFs and see how they compared against the yellow metal.

GDX: Market Vectors Gold Miners ETF

  • The GDX (Market Vectors Gold Miners) ETF closed at 42.31 +.60 (1.44%). The 52-week Range is: 39.08-66.98.

  • The market closing below the 9, 18, and 36 day MAs on a weekly basis, negates what indicated last week to be a strong momentum rally coming up for the next few weeks.

  • With the market closing below the VC Weekly Price Momentum Indicator of 42.53, it has negated the bullish sentiment to bearish. A weekly close above 42.53 would negate the bearish sentiment to neutral.

  • Look to take some profits if short as we reach 40.23 to 38.15 for next week.

  • Buy corrections to 40.23 to 38.15 levels to cover shorts and go long on a reversal stop. If long, use the 38.15 levels as a SCO/GTC (Stop Close Only and Good Till Cancelled).

PHYS: Sprott Physical Gold Trust

  • The PHYS - Sprott Physical Gold Trust ETF - closed at 13.70 + 0.16 (1.18%). The 52-week Range is: 13.03-16.86

  • A weekly close above the 9, 18, and 36 day MA's on a weekly basis, sets the stage for what could be a strong momentum rally coming up for the next few weeks.

  • With the market closing above the VC Weekly Price Momentum Indicator of 13.63, it has negated the bearish sentiment and turned to bullish.

  • Look to take some profits if long as we reach 13.88 to 14.06 for next week.

  • Buy corrections to 13.45 and 13.20 levels to cover shorts and go long on a reversal stop. If long, use the 13.20 levels as a SCO/GTC ( Stop Close Only and Good 'Till Cancelled ).

AG: First Majestic Silver Corp.

  • The AG - First Majestic Silver Corp. - closed at 14.38. The 52 week Range is: 12.12-25.56

  • The market closing below the 9, 18, and 36 day MAs on a weekly basis, negates what indicated last week to be a strong momentum rally coming up for the next few weeks.

  • With the market closing below the VC Weekly Price Momentum Indicator of 14.45, it has negated the bullish sentiment to bearish. A weekly close above 14.45 would negate the bearish sentiment to neutral.

  • Look to take some profits if short as we reach 13.62 to 12.85 level for next week

  • Buy corrections to 13.61 to 12.85 levels to cover shorts and go long on a reversal stop. If long, use the 12.85 levels as a SCO/GTC (Stop Close Only and Good Till Cancelled).

AGQ: ProShares Ultra Silver ETF

  • The AGQ - ProShares Ultra Silver ETF - closed at 37.37 + .22 (.59%). The 52-week Range is: 34.45-127.08

  • The market closing below the 9, 18, and 36 day MAs on a weekly basis, negates what indicated last week to be a strong momentum rally coming up for the next few weeks.

  • With the market closing above the VC Weekly Price Momentum Indicator of 36.99, it has negated the bearish sentiment and turned to bullish.

  • Look to take some profits if long as we reach 38.59 to 39.82 for next weekly period.
  • Buy corrections to 35.76 and 34.15 levels to cover shorts and go long on a reversal stop. If long, use the 34.15 levels as a SCO/GTC (Stop Close Only and Good Till Cancelled).

Source: Metals ETF Weekly Special Report For July 16, 2012

Additional disclosure: Precious metals products trading involves significant risk of loss and is not suitable for everyone. Past performance is not necessarily indicative of future results.