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Gold-Silver Options Play: Double Speak FED Holds Metals

As Jackson Hole Comes to a Conclusion the FED Hints at a Possible Hike by Year End Causing Gold and Silver to Hold Pat for Now.

Fundamentally, with Jackson Hole coming to an end the FEDs Janet Yellen makes comments that dont tell us anything we dont already know. In her speech on Friday she proclaimed something to the effect that the enviroment is condusive to a rate hike, yet there are still headwinds.

More double talk form a FED that is losing its grip. That fact alone should cause some uncertainty. At any rate, Gold and Silver edged slightly higher and with no real surprises. Maybe the metals are ready for the next leg up.

Either way traders should be positioned for moving Gold and Silver markets. After some recent consolidation it would appear the metals are ready to trend.

Technically, on the daily chart below I have placed my favorite technical indicators. I call this combination of indicators the "10/20/50/BB/ Trend Finder" strategy. They are the 10 day Simple Moving Average (SMA, red line), the 20 day Simple Moving Average (SMA, green line), and the 50 day Simple Moving Average (SMA, royal blue line). I have also added the Bollinger Bands (BB's, light blue shaded area) and Candlesticks (red and green bars with the wicks).

On the daily Gold chart to the right, the market is trading below the 10 day and the 20 day SMAs as both indicators are pointing slightly lower. The 10 also crossed down and under the 20 indicating the start of a PRINCIPAL trend down for now. There also seems to be some support at this level.

On the daily Silver chart below the market has broken out to the downside and is now in a PRINCIPAL trend lower indicated by the fact that the 10 day SMA has crossed down and under the 20 day SMA and the market is trading below the10 day using the 10 day as its upside resistance.

I figured all this out by putting my "10/20/50/BB Trend Finder" on the chart above and applying these indicators to the charts at the click of a mouse which I found on MARKETHEAD, an application that we have developed for our clients and where I get about 70-80% of all my research from. That means I get both technical and fundamental research from this web app and I am a veteran series 3 Broker of 17 years. So if I'm using it then maybe my readers should check it out. Yes?

Matt McKinney

 

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
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