What is happening to the metals? — a chart update


The charts look potentially very ugly in the metals

I do not blog much anymore — far more important things going on in my life in building and launching my fund. But, last time I covered the metals I cited potentially bullish chart in Gold. The weekly Gold chart has been constructing a massive rectangle since September 2011 as shown below. My bias, posted January 11, was that Gold would move out of the top end of the rectangle, launched by the intermediate completion of a channel beginning in early October.


The daily Gold chart now appears to be moving through the lower boundary of the channel, setting up a challenge of the lower boundary of the weekly chart rectangle. The Gold chart must hold the 1510 to 1520 area, otherwise the downside target becomes $1250.


Silver is also set up on the weekly chart for a massive decline. The weekly chart displays a continuation H&S pattern.


The chart situation in Copper is particularly interesting. The weekly chart displays a massive symmetrical triangle dating back to early October 2011. The upper boundary turned back the rally in February, and the slight penetration of the upper boundary could represent a possible bull trap. A completion of the massive triangle in Copper would set a target of $2.70.



Markets: $GLD, $SLV, $HG_F, $SI_F, $GC_F