Many folks requested that I post longer-term ideas, or plays that don’t last for only a few minutes heh. Well, first it was the casinos, which still have more room for upside, and now I want to talk about gold and silver.
Prior to 2010, all of us at iBankCoin made predictions for 2010. One of my predictions was that “Gold will continue it’s correction for the first quarter of 2010 and break the 2009 highs after Q1”. Exact words. So far, part one of that prediction is true and part two has yet to be seen. With recent technical developments in both gold and silver, I think we have a play here, finally.
Gold broke out of a symmetrical triangle at the beginning of this month. It is also testing the channel high as shown in the continuous contract chart. We may need to watch some action between the sym tri’s upper resistance and the channel’s high. Also, notice that the price action is fully above all four SMA’s (20, 50, 100, 200). The GLD tells a similar story. I posted some of the best gold charts I could find.
Silver also broke out at the beginning of this month above upper multi-month resistance. I did not find as many silver setups, but precious metals, in general, should be a place to focus on.
I am looking for a test of channel highs and possibly one more pullback before deploying gold and I am looking for some kind of foothold between 18-18.70 in silver before deploying silver positions in my positional account.
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