Precious Metals Monday

Precious metals have been coiling up like crazy over the past few months and although this is a tough sector to participate in at the current time  I’m now starting to look at possible entry opportunities. The current formation appears to be slowly inching its way toward a resolution toward the long side, although of course it could be nothing but another honey trap for the gold bugs.

So here’s my perspective: After a large gap that sucked in a bunch of eager beavers the invariable sell off that followed it should have discouraged a lot of participants. The current formation almost looks too good to be true which is partly why I’m taking it given the prior context.

My play is to be long here with a stop below GC 1341 although feel free to lower that if you want to play more conservative. Alternatively this setup works on MGC, YCG (your broker’s symbols may differ), or the the EFPs GLD or IAU.

Silver is looking a bit more precarious and the wild swings lately have not been for the fain of heart. Scary looking tape usually makes me reduce my position size in anticipation of quick snapbacks but also large outlier winners.

The hourly panel is looking supportive of a long position with a stop below the recent spike low near 16.42. This is a possible swing trader burn campaign with low odds and high pay off so keep your position sizes small.

As SI is a big contract I alternatively recommend QI or XSN for smaller account holders – the latter has little volume however so your fill may be crap. You can also resort to ETPs, e.g. SLV, DBS, USV, etc.

Quick update on the E-Mini campaign. My stop at break/even miraculously  survived the Friday shake out and thus far the tape seems to be pushing back in my favor, which is up. Nothing to do here as this is overdue to resolve higher or finally crash and burn.

Alright we have a ton of entries this morning, so let’s get to work! Bitcoin is a long for me after it may be done scaring the children. The current rising flag has decent odds to resolve higher given that the hourly BB is now pointing upward.

Plenty more below the fold, so if you’re not a sub then this is a great day to join:


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