Looking at the metals market I believe we’re going to be running into some major resistance soon for a couple of reasons. I share a different opinion than most that these markets are going to explode to the upside and below I’ll explain my reasons. I do believe the bull market in gold/silver will continue, just with a fairly deep correction to stir the pot and shake out any weak hands, as well as give new traders/investors a chance to get on board this bull train.
I’m not suggesting to take action at this time and position yourself on the short side as that would be foolish as these markets continue to rise. However, if you are currently very long in these metals I would watch very closely how these charts react at the resistance areas below and then react accordingly.
- Sentiment is very bullish in this sector. Every single analyst and contributor at Agora Financial felt that gold was going to be significantly higher next year, and while that may very well be true, a correction would go a long way for the longevity of this bull market.
- Technically GOLD hasn’t based long enough after this recent pullback for a major breakout to succeed and SILVER is approaching long term resistance that should prove difficult to overcome. These markets correct fast and furious so I’m not expecting too much of a warning when/if this does occur.