The metals were really set back some Tuesday. And, I saw a lot of red in my trading account. What will the charts say, and what was the volume like? Since the decline in price seemed a bit large, and everything went down, I would suppose that volume, across the board would have been greater than average; but that, I don’t think price support is yet in danger, and this is still within a correction/consolidation. So, to the charts…
Well, right up front, the first I see is a relatively small decline, and on light volume at that! As with: SSRI, AG, PVG, CDE, FSM, HL, RIC, AUY, RGLD, SLW, PAAS, SGDM, KGC and SLV.
And, there are decliners on merely average volume: AKG, MUX, ABX and GDX.
Now, volume was rather high in the decline of: IAG and GLD.
Okay, I’ve got to say it… I am greatly surprised that the overall volume involved with today’s decline in prices was so low! Second, while the average decline in price was 2%, the ‘candle’ on the chart is still well within the bounds of the consolidation pattern of the ‘cup-with-a-handle’ type chart pattern. Either of these points are bullish, but the 2 together is positively bullish. In other words, traders and investors saw the decline in metals prices today, as large as they seemed to have been, to have been NO threat whatsoever to the bullish outlook of an ongoing Bull Market in the metals and their mining shares. Not today anyway! They need some time to correct and consolidate, and they are taking that… when they are through, it is likely a new surge upward in price is what was should expect.
Here’s to your accumulation of real wealth!
Harold F Crowell