|
1. Markets rarely provide “total satisfaction” to investors, and when they do,
it’s usually not for long. The gold and silver markets are overbought
on short term charts, but they refuse to sell-off very much.
2. This situation is frustrating, especially for people
who want to enter the market on the buy side after a “decent correction”.
3. Please click
here now.
4. You are looking at the daily chart of the CRB index.
Note the big down day yesterday that filled a price gap. There are
significant sell signals now, on both the Stochastics
and RSI indicators.
5. I have highlighted decent support. It starts at
about 308.25, and extends down to the 294.82 area.
6. A sell-off in the CRB could negatively affect gold
and silver. Please click
here now. This is the daily chart for gold. Note the highlighted area. As
the RSI indicator became overbought and rolled over in the 70 area, gold fell
from about $1680 to $1648.
7. Gold then advanced about $130 higher, and has become
even more overbought, basis the RSI indicator. At this point, gold has
steadily climbed about $250 from the lows near $1526.70, which has shocked many market observers.
8. Overbought conditions can persist for a long time.
They can also be alleviated by a sideways consolidation in price, rather than
a sharp sell-off.
9. It’s probably impossible to know whether gold
will continue to surge higher, consolidate sideways, or experience a sharp
sell-off. Investors should hold core positions to deal with the possibility
of continued strength, and place buy orders to deal with a potential
correction. Patience is also required, to professionally manage the
possibility of a sideways drift.
10. Where should buy orders be placed? Please click
here now. Note the blue horizontal lines.
11. There is HSR (horizontal support & resistance)
near $1748, $1718, $1680, and $1643. Aggressive gamblers could place buy
orders at $1748 and $1718.
12. More conservative
investors should probably await a move that takes gold down to the $1680 and
$1643 price areas.
13. In the big picture, the arrival of QE3 is bullish
for gold, but it also creates nervousness amongst some investors.
14. They wonder if all the news is already “baked into the gold price cake”.
They fear that a big price correction could happen soon.
15. Others feel that QE3 is creating a situation where
gold can’t sell off very much, so even the tiniest corrections need to be
bought aggressively.
16. This “stewing
pot of emotions” is probably setting up a situation where sell-offs
will become very large, but only last for a short amount of time.
17. Please click
here now. You are looking at the daily chart for silver. There is a
technical non-confirmation in play now. The silver price made a new minor
high, while the RSI indicator has turned lower.
18. I view silver in the $35 price range as representing
good value, but this is still a seller’s market, because the price has
rallied from $26.
19. As with gold, it’s important for silver
investors to hold core positions, so you can benefit if the price keeps
rising. Place buy orders under the market, so you can accumulate more if the
price falls.
20. Because silver tends to track gold very closely, you
could simply buy silver when gold arrives at any of my key HSR buy points.
Unfortunately, as market volatility grows, you may not have time to place any orders by operating like that.
21. To view my key buy prices for silver, please click
here now. Gamblers should focus on buying the $34 and $32.50 price areas.
Investors could wait for $31.25 and $28.44.
22. QE3 has ushered in a new era for investors, and I
believe the name of that era should be,
“He who hesitates is lost.”
23. I don’t mean that you need to rush in and buy
gold & gold stocks at any price, “before they get away”. I’m referring to the
importance of boldly placing buy orders below current prices, with strictly
limited risk capital!
24. It’s critical to set key limits on the amount
of your positions that you “offload”
into strength like we are currently experiencing in the metals markets.
Don’t just wildly unload your core positions as the market becomes more
overbought, because the price could still go a lot higher before correcting
at all. If you’ve booked profits,
be happy!
Special Offer For Website Readers: Please send me an Email to freereports4@gracelandupdates.com
and I’ll send you my free “Twin Rockets” report! I’ll
show you why both natural gas and uranium may be sitting on an almost identical
“price launch pad”. Is the countdown to blast off underway now?
Thanks!
Cheers
St
|
