Yes, the metals got whacked good. I can see why. Looking at a chart of the trading in the $USD, the key critical 94 level was breached to the upside… even tested a couple of times and held, and is now bouncing repeatedly off a new support level of 94.10. That being the case, before I even look at the charts, I would expect some rather serious downside in price movement and on rather large volume… and possibly even a breaking of the just tested price support levels, too. So, let’s now take a look…
Okay, first, I have decliners on relatively average volume! There’s RIC, KGC, PAAS, HL, AG, FSM, EXK, SGDM, RGLD, SLV, SLW and AU.
I even have decliners on light volume! There’s NGD, AUY, IAM, CDE, AGI, ABX, SA and GLD.
There was one to fall on big volume, GDX.
I am surprised! With nearly all at average or light volume, they nearly all are above, or are at recent price support. The action of these holdings are saying that there’s no real worry or fear… yet. Let’s see what happens next, as the price of the metals need to hang in here, and not fall further, or technical price support will be broken, and volume would likely pick up, as traders bail out of their positions. We’re kind of at a short-term critical juncture right here, but fear not… in time, if not right away, the metals are almost certain to do incredibly well… but, then, on my other blog, here: https://dividendgrowthinvesting.wordpress.com/ I do see evidence that stocks might take-off, and that might pull money away from the metals to chase stocks.
As things look tonite, there’s no cause for concern. I’ll look again Tuesday morning.
Well, we’re getting what we hoped for. Metals have recovered a bit in price overnight as of 6:45 am EST. It would be a good thing if it did, as price support would otherwise get broken.
Here’s to your accumulation of real wealth!
Harold F Crowell