Good morning,
There's been plenty of volatility in the Precious metals markets and that's certainly to be expected. I'm trying to keep this blog up to date but there are only 24 hours in the day and it's been very hard to keep this blog current.
I wrote on August 15th that I was adding to my position in DEC GOLD below $675 and, when the price broke through the 7/5 low of $659 I stepped up to the plate and swung for the fences by taking a sizable position on the break. The market action on 8/16 was a classic selloff taking the market down far enough to hit the stops below the 6/27 low of 653.50 only to finish the session back above that support area which led to the sharp rally the following day. This was, quite simply, a market that had been stretched too far. With my technical indicators all signaling that a sharp rally was near I jumped in with both feet. As I write this the market's trading around $676.50 and I believe that a breakout above $700 will occur in the not-too-distant future. If and when that occurs, DEC GOLD could easily eclipse the April highs at $718 making $800 the likely next step as it continues its climb towards the $1,000 mark. Stay tuned!
Dale F. Doelling
President and Chief Market Technician
Trends In Commodities
No comments:
Post a Comment