What is happening to the metals? — a chart update

 

The charts look potentially very ugly in the metals

I do not blog much anymore — far more important things going on in my life in building and launching my fund. But, last time I covered the metals I cited potentially bullish chart in Gold. The weekly Gold chart has been constructing a massive rectangle since September 2011 as shown below. My bias, posted January 11, was that Gold would move out of the top end of the rectangle, launched by the intermediate completion of a channel beginning in early October.

2.20_GC_weekly

The daily Gold chart now appears to be moving through the lower boundary of the channel, setting up a challenge of the lower boundary of the weekly chart rectangle. The Gold chart must hold the 1510 to 1520 area, otherwise the downside target becomes $1250.

2.20_GC_daily

Silver is also set up on the weekly chart for a massive decline. The weekly chart displays a continuation H&S pattern.

2.20_SI_weekly

The chart situation in Copper is particularly interesting. The weekly chart displays a massive symmetrical triangle dating back to early October 2011. The upper boundary turned back the rally in February, and the slight penetration of the upper boundary could represent a possible bull trap. A completion of the massive triangle in Copper would set a target of $2.70.

2.20_HG_weekly2.20_HG_daily

 

Markets: $GLD, $SLV, $HG_F, $SI_F, $GC_F

 

 

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

blog comments powered by Disqus
Peter Brandt Blog