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Silver, Gold And Crude
Oil Taking A Breather At Support
by Chris Vermeulen
Last week all three resources pulled
back after posted gains the week before. This week will be interesting with gold
trading at support, silver just above and oil looking like its going to come
down and test support as well. This week I figure we will see some bounces or
breakdowns occur.
Gold ETF Trading Fund – GLD
Gold is currently at support and
really giving the support line a run for its money. If this trend line support
is broken I figure we will see $87.50, which is the next technical support
level.
Silver Trading ETF Fund – SLV
Silver is trading just above
support. It would be good, if we could have some sideways action and then form a
reversal candle sending silver higher. This would generate both a buy signal and
low risk setup.
Crude Oil Price
Crude oil has been making its way
higher over the past few weeks and we are well in the money on the USO trade.
Oil looks to be rolling over here and we could see prices drop very quickly, as
this VERY POPULAR commodity has speculators all over it trying to make a quick
buck.
Trading Conclusion:
This week we will be watching for
bounces/reversals for all three commodities. If things work out, we could be
adding some new long positions this week or early next week. But if prices
continue to roll over here, we will be taking profits and sitting on the
sidelines until new setups happen.
The broad market (Dow Jones
Industrials) looks to be over bought in the short term and momentum is currently
negative. The Dow, SP500 and Russell 2000 have rallied up to a key resistance
level, while the NASDAQ has posted some big gains and almost trading positive
for the year. The market overall is mixed, so short term trades, be ready for
some whipsaw action.
If you would like to receive my
trading reports please visit my website:
www.TheGoldAndOilGuy.com
Chris Vermeulen
Chris
Vermeulen is Founder of the popular trading site
www.TheGoldAndOilGuy.com.
There he shares his highly successful, low-risk trading method. For 6 years
Chris has been a leader in teaching others to skillfully trade in gold, oil, and
silver in both bull and bear markets. Subscribers to his service depend on
Chris' uniquely consistent investment opportunities that carry exceptionally low
risk and high return. Reach Chris at: Chris [at] theGoldAndOilGuy [dot] com
This article is
intended solely for information purposes. The opinions are those of the author
only. Please conduct further research and consult your financial advisor before
making any investment/trading decision. No responsibility can be accepted for
losses that may result as a consequence of trading on the basis of this
analysis.
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