Metals Getting Ready For A Big Move
Gold and silver are once againsetting up for a big move as they sit in a consolidation range. The congestionpattern represents the time of most confusion for investors as markets reachthe bottom of the range and bounce, and then reach the top end only to sell off.This pattern keeps investors and traders alike in a state of frustration.
Gold has been consolidating for sixmonths while silver has been in this pattern for almost a year. As theconsolidation narrows, the odds increase for a big move in either direction.Consolidation creates a combustible set-up, which leads to a big move in eitherdirection.
The way the metals are set up now,gold should break out to the downside to $1,280, while silver should break outto the upside and test the mid-$17 level. The gold/silver ratio is 79-1 andcontinues to come in, heading to the next level of 70-1.
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