Precious Metals Shakeout
Chart 1: Precious metals are still in well defined pattern of lower highs…
Source: Short Side of Long
Precious metals continue to puzzle majority of investors. From the bullish aspect, market participants see great value and extremely depressed prices, so it only makes sense that we see a random “guru” or “finance expert” call a bottom in this sector every second month. Recent price action showed us an oversold condition being reached in December 2014, from which a powerful rebound occurred in January of 2015. Obviously, it was only normal to yet again hear calls that the Precious Metals sector bottom has finally been reached.
But the simple analysis of the price action so far disagrees. Neither Gold or Silver registered a higher high on the weekly chart, which usually in its purest form, signals an uptrend. It is quite clear that both metals still keep printing a pattern of lower highs. Finally, as we should be able to observe in both Chart 1 and Chart 2, hedge funds and other speculators piled into the hype and were holding the largest net long position since late 2012. So, should we be surprised at the way both Gold and Silver have reversed in recent weeks?
In my opinion: No.
The recent purchases at the start of the year, of GLD and GDXJ from my newsletter portfolio, have been closed this week for only a very very minimal gain.
Chart 2: …while hedge funds & speculators have piled into the long side!
Source: Short Side of Long
The post Precious Metals Shakeout appeared first on The Daily Gold.
Source: http://thedailygold.com/precious-metals-shakeout/
Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.
"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
Please Help Support BeforeitsNews by trying our Natural Health Products below!
Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST
Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!
HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation.
Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.
MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser! Cleans out toxic buildup with oxygen!
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover - Reduces Smart Meter radiation by 96%! (See Video).