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Big Move Coming In Metals

Commentaries & Views

The metals continue to trade in a range and now that range is narrowing, indicating a big move is on the horizon. The only question is which way -- just like Elmer Fudd in the Bugs Bunny cartoons, which way did he go?

Congestion is the toughest pattern to read because the markets continue to make a series of double tops and double bottoms. The congestion phase can easily be named the confusion phase because that’s what investor are at that point -- confused.

Based on the outside markets, percentages favor the next move to be lower. The dollar looks like it wants to break out to the upside, which would put pressure on the metals. We remain bullish long term but would not be surprised to see a sell-off in the short term.

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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