Constructive action for metal bulls
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Tuesday’s intraday reversal has so far held up, so this trader is inclined to give bulls the benefit of the doubt that the next move in gold will be a retest of $1,965.
The equivalent move in silver would be a move to the $25.40 area. The resistance at $1,000 in platinum is strong, but bulls seem to be carving out a bottom and a test of $1,035 in the short term would not be surprising.
A word of caution: A firm close under $1,915 opens the door wide open to $1,875. The reality is that choppy markets can and will catch traders off guard, especially if there is a mental commitment to a specific direction.
US equity indices are pointing to a flat open after Wednesday’s pullback, and that weakness looks set to persist today. Sidelined stock bears may soon have a chance to change direction for a rally back to the all-time highs. Conversely, the bear case comes back to life with a close below the February 24 low.