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Weekend Gold Precious
Metal Trading Report
by Chris Vermeulen
Last week was interesting with
precious metals stocks finding support and moving higher to close above
resistance on Friday.
Not much has changed in the past few
days other than the BP chart (bullish percent index chart) for gold miner stocks
which has put in a short term bottom. If gold continues to push higher above its
resistance trend line I think we could see gold stocks follow suite and
eventually out perform gold.
The BP chart can stay in the upper
zone for several months as gold & gold stocks run higher at an accelerated rate.
Gold Precious Metal Bullish Percent
Gold GLD Precious Metal Fund
Gold continued to move higher on
Friday closing above two key resistance levels. Gold closed above my resistance
trend line and 50moving average which sets a bullish tone.
What makes me excited
is that gold rallied with the broad market. I mentioned in a previous report
that when the broad market is so over bought and ready for a correction people
were starting to put their money into gold because itís known as a safe haven.
In the past the broad market would rally and gold would go down; if the broad
market pulled back, gold would rally.
So with Fridays rally in both gold
and the broad market it says a couple things to me.
Friday was light volume and only
buyers were sticking around buying the market higher.
Broad market is over bought & at
resistance, smart money is moving into gold.
Gold Precious Metal Trading
Gold and the broad market have set
the stage for another rally in gold with the broad market moving lower over the
next 3-6 weeks. I do not think the broad market will make a new multi year low
but I think will correct 50% of this current rally.
I can see gold testing the $1000
mark again but do not think it will breakout and rally much higher. This is
because if we get a controlled pullback in the broad market over the next 3-6
weeks and stocks start to rally again confirming a bottom in the stock market
then I think we will see a lot of money get pulled out of gold and put into
We should have some exciting
movements this week with gold testing resistance and oil staring to move higher
in its final stages of a cup & handle formation.
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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