Filed under: Trader Dan Norcini
Dear friends,
We have some short term technical damage done to the gold chart but the primary long term uptrend remains intact. Traders with a short term perspective will act accordingly while longer term oriented investors will also take note and look to establish positions in the direction of the primary trend.
The HUI experienced a bearish engulfing pattern on its daily chart yesterday and that is leading to follow through selling today in the mining shares. Watch the support levels closely and see how the shares act as they move into this region especially if you are acquiring for the long term. The HUI has remained above the 40 and 50 day moving averages since August of this year on an end of trading session basis. Should it move down into this region again and refuse to breakdown, you will know what to do.
There is a band of congestion support in silver coming in near the 26.75 – 26.45 level. From a technical perspective we would not want to see it violate 25 to the downside.
Good technical action in the grey metal would be for it to hold above the recent breakout level near 27.90 and work sideways for a week or so.
The trend is your friend in the metals.
The bond market has gotten beaten with an ugly stick today. I am sure that is not making the Fed officials very happy especially considering the huge sums of money that they have spent in artificially trying to push rates lower on the long end of the curve.
DAN'S CHARTS:
http://jsmineset.com/wp-content/uploads/2010/12/ComexGoldDec8-2010.pdf
http://jsmineset.com/wp-content/uploads/2010/12/HuiDailyChart1.pdf
We have some short term technical damage done to the gold chart but the primary long term uptrend remains intact. Traders with a short term perspective will act accordingly while longer term oriented investors will also take note and look to establish positions in the direction of the primary trend.
The HUI experienced a bearish engulfing pattern on its daily chart yesterday and that is leading to follow through selling today in the mining shares. Watch the support levels closely and see how the shares act as they move into this region especially if you are acquiring for the long term. The HUI has remained above the 40 and 50 day moving averages since August of this year on an end of trading session basis. Should it move down into this region again and refuse to breakdown, you will know what to do.
There is a band of congestion support in silver coming in near the 26.75 – 26.45 level. From a technical perspective we would not want to see it violate 25 to the downside.
Good technical action in the grey metal would be for it to hold above the recent breakout level near 27.90 and work sideways for a week or so.
The trend is your friend in the metals.
The bond market has gotten beaten with an ugly stick today. I am sure that is not making the Fed officials very happy especially considering the huge sums of money that they have spent in artificially trying to push rates lower on the long end of the curve.
DAN'S CHARTS:
http://jsmineset.com/wp-content/uploads/2010/12/ComexGoldDec8-2010.pdf
http://jsmineset.com/wp-content/uploads/2010/12/HuiDailyChart1.pdf
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