If Silver, Gold Get Going, Palladium Will Follow Higher
Warren Bevan | Jul 25, 2016 01:29AM ET
Stocks rested mostly this past week along with markets who continue to setup for another round of higher prices as summer rolls along at a typical fast pace.
Metals didn’t do too much either this past week but they did show a few flashes of weakness which were quickly quashed as support levels held and now they look set to move back higher.
Gold lost just 1.07% this past week and it’s trying to move out of this falling wedge now.
Gold was weak and trying to show a breakdown as it moved under the 21 day average but Thursday saw the precious metals quickly reverse back above the 21 day average which is very positive.
If a chart tries to break one way and can’t then chances are it will go the other way pretty quickly.
That said, gold did move back barely under the 21 day average Friday and closed the week under it so sometimes things just are muddled, like a good mojito.
A move back above $1,340 is the area I’d look to enter a new position.
Silver lost 2.99% this past week but continues to hold up better and lead gold.
Looks like silver is ready to move back above the $20 level where I’d look to enter a new trade.
Silver reversed very nicely off the 21 day average and closed the week above it which is much better than gold.
Platinum lost 0.96% for the week past but remains in a horizontal channel which does imply higher prices are next.
$1,112 is the buy point anytime now.
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Palladium gained 5.52% as it continues to act very, very strongly.
There is major resistance on the weekly chart at the $690 area so this moonshot looks set to take a nice long break for the rest of summer.
That said, if silver and gold get going again then palladium may also continue higher but it really does need some rest here after such a strong, sustained move higher.
If palladium does continue higher, look to the $750 area as the next major resistance level.
I hope you’re having a great, easy and fun summer.
Stocks have been treating us very kindly by making us money and requiring minimal attention, just the way I like it while the sun shines!
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