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Contributed Commentaries

Bears try to strike back - but trend still intact

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Featuring views and opinions written by market professionals, not staff journalists.

Commentaries & Views

The last line I wrote on Thursday last week was: “For now, I am braced for more volatility coming on tomorrow morning’s jobs report.” The volatility on Friday did not disappoint; sellers may have done enough to prevent that runaway rally I also alluded to on Thursday.

But despite the swings, thus far, the best the bears could do has been to prevent a runaway rally. A look at the daily chart of gold below shows a channel still intact.

A look at the 3-hour silver chart shows a consolidation taking place within the arc.

Although a breakdown of the above-shown patterns would likely lead to more selling in the short term, until proven otherwise, I continue to believe such an event would only be a better buying opportunity.

Thanks, and have a nice week.

By

Jonathan Da Silva

Contributing to kitco.com

Contact jdasilva@kitco.com
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.