In this trader’s opinion, the weight of evidence is strong that metals either have, or are very close to beginning a sustained counter move to the relentless downside action. An obvious catalyst for volatility is next week’s FOMC rate hike decision; traders may expect either a difficult bottoming process whereby lows are retested or perhaps even undercut, or, a complete rocket shot move higher leaving bulls on the chase (is the rubber band stretched too far to the downside ready to snap back)?
Below are gold and silver charts on the daily timeframe. The 50 day moving averages coincide with down sloping trendlines from the metals’ prior highs. This might be the target for short term swing traders or speculators to look out for on the upside.
A close above $1,735 in gold and $19.10 in silver today would be a short-term bullish signal.
Thanks and have a great weekend.
