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We had a great
week with markets consolidating recent gains and setting up for higher prices
this coming week by the looks of things.
Many
stocks were hit hard but most are just consolidating after some huge recent
gains and are setting up for more upside in the very near future.
As
for the precious metals they are not in good shape with the exceptions of
platinum and palladium.
Many
mining stocks are under pressure with tax loss selling reaching a climax now
but that means there are some really good bargains out there and downside
looks mostly limited from this point.
Metals review
Gold fell only
0.69% this past week but is exhibiting weak signs that do not bode well for
the king of precious metals.
I
simply don’t have time to look into all the possible reasons why gold
is falling anymore, the fact is that last week a bearish wedge pattern was
broken to the downside.
The
charts really do tell all. They tell when buyers are present and in what
quantity and they tell when sellers are winning. Right now sellers are
winning.
It’s
much easier to just interpret the chart than to deal with the copious amounts
of information that so many focus on which may or
may not help in determining direction.
While
markets and many stocks look really good for higher prices into the end of
this strange 2012 that it was, I can’t say the same for gold.
Last
week I called for a move to $1,700 at least and more likely a move towards
testing the 200 day moving average at $1,664. Don’t shoot the messenger, I just regurgitate what the charts are telling
me.
It
looks as if we are heading towards the 200 day moving average here now for
certain and even a move to test the $1,640 area is looking to be in the cards.
It
looks like we could close out 2012 with a $100 or so gain on the year in the
end which is better than I’d thought. Early in 2012 I said we could
well see the first down year for gold since it’s
secular bull market began. I am glad I so far look to be proven wrong on that
front but the gains are certainly nothing to write home about for 2012.
Let’s
hope 2013 is a much better year.
Silver
dropped 1.31% this past week. Last week I said silver was holding up much
better as it was in a nice uptrend channel but as gold was breaking down it
had me concerned.
Those
concerns turned out to be realized this week as the uptrend channel was
broken. Now silver is working on breaking through it’s 50 and 21 day moving averages here.
To
my eye, the $31 area looks to be next up. We did start 2012 around the $26
level so all in all not bad gains for the year. It certainly felt worse than
it was.
The
spike in 2011 to $50 got everyone so excited, too excited. Moves like that
don’t last and we know that but still so many lose all semblance of
reality and the giddiness takes over.
I’m excited for 2013.
Platinum
fell 0.06% this past week. It was basically flat. I said last week that it
looks good for higher prices and it still does. It’s just building this
base here now still in this triangle pattern.
A move above the $1,625 level is still the breakout, or buy
point for traders.
Palladium
rose 2.03% this past week. Last week I suggested this large move higher was
approaching it’s end for now at the $700 area
and that is exactly what has taken place so far.
I
said that if you were long I’d be taking profits near $700 and I still
think that is a good idea.
Ideally
we consolidate gains here for a week or two and build a handle to form the
end of a cup and handle pattern.
If
that is to take place it will set up up for another
massive move higher but time will tell. So far I’d just be taking
profits here and observing the chart nightly.
I’m
nearing completion of my new website so please check it out along with my new
blog posts of leading stocks who are moving or on the move but they are
always delayed.
http://wizzentrading.com
To get the charts before the moves take place join
subscribers and I for daily reports detailing these potential moves in depth.
Have
a great weekend and week ahead and thank you very much for reading.
I
hope I can help guide you a little bit here in this free weekly letter.
Warren
Bevan
www.preciousmetalstockreview.com
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