Tuesday's Rally Not Enough
With all the panic in equitiesTuesday, the metals did not rally enough, indicating that they are headedlower. Goldlooks to be headed for $1,300 and silver $16.40, where they shouldfind some support.
The metals markets look weak,especially when looking at the troubles equities are having. The action shouldhave created more upward momentum in the metals, but it did not. This suggeststhat the top end of consolidation is going to hold, and we should now see a retestof the bottom end.
The big difference between silverand gold is silver has broken out to the upside and is selling off to support,while gold has been unable to break out, staying range-bound between $1,300 and$1,365. This is great action for short-gold, long-silver trade.
Keep those stops tight.
Contributing tokitco.com
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