opinion

Metals supported as stocks look weak

Kitco Media
By Jonathan Da Silva
Published:
Updated:
Kitco Commentaries
Opinions, Ideas and Markets Talk

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

The stock market looks primed for further losses. The below daily chart shows that stochastic RSI is dipping into the oversold condition. Should momentum engrain to the downside, the open gap below the 50-day moving average comes into play. Note that the first open gap we had mentioned as a "flashing downside short target" last week, has now filled.

Conversely, gold bulls are stepping in and the price seems to be firming up above Monday morning’s as we then suggested was probable after the crash through $1750. The Stochastic RSI is starting to perk back up on the daily time frame; gold bulls want to see that momentum blast through the yellow highlighted area (on the indicator) as price gets back above the $1750 level.

Thanks and have a great day,

Kitco Media

Jonathan Da Silva

Jonathan Da Silva developed a passion for hard money and economics from a young age having been influenced by family who sought to teach me that "nothing is free", and the importance of intrinsic value early on. My interest in markets grew keener during the great financial crisis of 2008; leaning on family with vast trading experience, I began to self-educate on technical analysis and economics- drawing inspiration from the works of individuals like W.D. Gann and Adam Smith. I have been a proud member of the Kitco team since 2017 and hope that my writing inspires readers to consider an objective view of the metals, and the greater financial markets.

Mdi Earth Logo

Tags:

Contributed Commentaries
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.