Friday, September 7, 2012

Gold and Silver

We are currently witnessing a short-term commodity run that is wildly bullish in both sentiment and price. Suffice it to say, these pivotal times where Investors ignore risk, and are overconfident in their decision making actually mark key turning points.
Gold and silver have underwent a parabolic move, riding on the back of expected further easing from our Federal Reserve. This I can tell you will dissapoint many investors.
Consider this analysis.
All metals are now more overbought than their previous peaks of months prior. I would not see this as a concern had this just been on a daily chart, but it’s clearly visible now on the weekly chart.
Silver
 
Gold
 
This condition certainly adds weight to the bearish case in the coming weeks.
We may have a little more room to run for the very short-term, however, it would be unwise to overlook a pullback or even deeper correction looming just ahead.

No comments:

Post a Comment