Monthly Charts Clarify Pre-Drediction for Gold and Silver

We’ve been surprised at the recent action in the precious metals complex. During the recent correction the shares were showing quite a bit more strength than the metals. Then the shares took a dive below support yet the metals maintained their recent lows! How do we interpret this wild volatility in the relationship between the shares and the metals? Quite often we look at daily and weekly charts. Now is the time to take a look at the monthly charts which can help us get a better read on the larger trends at hand.

The monthly chart of Gold shows the yellow metal in a very healthy consolidation between $1550 and $1800. Gold’s current retreat from $1800 has lasted two months. Back in 2009, Gold brokeout to a new all-time high in the seventh month of its consolidation. Presently, Gold’s bollinger band width is at a multi-year low and its three-month volume average is at a two year low. Also, the RSI has bottomed and made a higher low. Even if Gold touched $1600, it would remain in healthy position for a breakout in 2013.

gold-buy

Gold’s companion Silver is currently trading in a tighter consolidation with $35 as resistance and $27 as support. Note that Silver has tested and held above $27 six times in the last fifteen months. Silver also held above the rising 40-month moving average which supported the market in 2009 and 2010. The RSI has also made a higher low and volume has trended down during the past seven months.

silver-buy

Meanwhile, the gold stocks (HUI) look weaker than the metals. Momentum hasn’t confirmed its bottom as the market is in a clear range from 400 (support) and 525 (resistance). Note the current 11% decline in the HUI for the month while Gold and Silver are still in positive territory. Nevertheless, if and when the HUI prints a monthly close above 525, this chart would like quite bullish and general sentiment would certainly pick up.

gold-and-silver

The evidence argues that the bottoms remain well intact and the metals are consolidating before the next breakout which entails Gold breaking $1800 and Silver $35. However, these breakouts are by no means imminent. Since we are dealing with monthly charts that means potentially three or four more months of consolidation. Furthermore, sentiment data such as the COT structure and public opinion polls need some improvement before the market could sustain a breakout. Thus, more consolidation could be the order of the day for the metals.

Continued consolidation in the metals also helps explain recent weakness in the HUI, which is simply testing the lower half of its own consolidation. The shares see the weakness in the overall market and perhaps sense that an immediate breakout in the metals is unlikely Furthermore, while central banks have put themselves in position to act they haven’t actually done anything yet. When the market senses their action it will likely mark a final low within this consolidation.

The good news is the metals remain in fine shape and so to do most of the mining equities we follow. If we are indeed correct that the metals and shares will remain range bound then your task is simple. Prepare yourself for further consolidation by having your buy list ready and then be ready to act when the time comes. A wise friend once told me that in a bull market the goal is to accumulate positions at the lowest prices possible. With mining equities trading well off their highs, now is the time to do your research and find the companies that will lead the next leg higher and outperform the gold stock sector.

Good Luck!

Commodity Report: MCX Gold, Silver & Cardamom and NCDEX Pepper, Chana & RMSeed

mcx gold and silver
Remember all readers & subscribers or I need to take one hammer for hit on your head huh?
As I said, both are running and soon it’ll touch targets.


mcx gold silver tips

 

Today you’ll see more Firework..

ncdex pepper tips
 

What I had written on 15th July 2011 about Pepper
Click Here to see it
Lion heart traders come with me – Make double dhamal in NCDEX

gif-dance
As I expect pepper hit our first target also as I said stoploss 27890 after the touch our bad line – It made good low.

What you expect about MCX / NCDEX – Cardamom, RM Seed, Chana..?
If you want to know more about it then subscribe our service now – CLICK HERE

Commodity Guesstimate(12-28-2010): MCX/NCDEX Gold, Silver, Kapas, CPO, Copper, Cardamom & Agro

Today market activity is same to yesterday, very light. As expected yesterday Gold & Silver taken ride and fired. Agro commodities in watching big movement put your eyes on it to take more profit from market.

mcx kapas
Listening sound of a lot money
Today, just watch 748 carefully
Crossovers will take 754 – 758
Keep stoploss 744


You will know how to live in market
Just Go…
Your Stoploss Rs.533
Targets: 539 – 543

mcx copper
Today copper will make new high
Keep stoploss 425
Intraday Targets 432 – 434
Intact target – 440

mcx ncdex cardamom
As I expected fired cardamom
Now, it’ll touch our last target 1600 soon
You just go & Book profit @ 1593

I’ll update more LIVE to my subscribers only

Commodity Guesstimate (12/27/2010)

You know readers, I had written on 8 Nov 2010, I’m watching no back door for seller. Invest your money anywhere, you’ll get 300% return on any commodity. Remember or not? Every hot commodity made new high, you should to refresh your memory and want to read it again carefully.

gif media politician
Click Here to see it

Today is crucial day. Market activity is especially light. Silver & Gold will take UP Ride sharply. But don’t forget my breakout level into silver & gold.

If silver close below 44018 & Gold if break or close below 20326 then we’ll see big battle

I’ll update more subscribers only – LIVE

Commodity Guesstimate(12/24/2010): Silver, Crude Oil, Zinc, Cardamom…

mcx-crude oil
Refresh your memory
I said so many times whatever direction in Crude Oil
It’s highly bullish trend
What now, Crude oil crossovers 4094 and made high 4143
My All Crude Oil Targets Blast
Click Here to see it
What you expect now about crude oil?

mcx zinc
Buy in Opening bell or 103 level
Your Stoploss 102
Ready for intraday target 104-105
Long Term Target – 107

mcx ncdex cardamom
Who want to do just profit?
Yes, Past two days our subscribers enjoying with Cardamom
Buy Cardamom @ Opening bell
Targets 1550 – 1576 – 1600