Technical Analysis Versus News
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
For years, there has been an argument about technical analysis -- whether or not it works for gold and silver. Many believe that the metals are manipulated, and technical analysis does not work on gold and silver.
The facts are simple. Technical analysis always works, giving traders and investors a leg up on those who try to play the news and fundamentals. They may not always be right, but they always give the individual the best entry on either side of the market.
The technicals in the metals suggest that the next big moves are higher. Many feel that the dollar and interest rates may put pressure on the metals. Correlations may work over the long haul, but entries and exits should be based on the technicals because they indicate the money flow. The lows should be in and the metals are ready to go higher.