In last weekend ‘s Weekly Strategy Session, I devoted a section to the precious metals. Despite the volatility in equities this week, the metals and even some miners have been impressive.
Please click here to learn more details about subscribing to my Weekly Strategy Session service. (Members of 12631 receive it as part of their subscription). I will have a more in-depth look at the metals again in this weekend’s version.
Gold and Silver Corrected for Virtually the Entire Month of October After Strong Upside Moves in Late-Summer/Early-Autumn. They are Both Back to Levels Where it Merits Keeping a Close Eye on Buyers Stepping in Again.
Patience has been virtuous with the precious metals after their explosive moves in August and September. On the weekly charts of the gold and silver ETFs, below, note that price has pulled back in October on benign selling volume to the convergence of the 20 and 50 period weekly moving averages. The massive weekly triangle breakouts from August and September that I have highlighted for you remain intact. Anecdotally, any enthusiasm about the precious metals that we saw six weeks ago has almost assuredly abated after this correction, which is exactly what you are looking to see in a buyable pullback–The eradication of complacency or even bullishness.
In the coming week, I am keeping a very close eye on the metals and precious metals miners (which have also weathered the correction well) for any signs of strength as a viable entry point for long swing trades.