Tuesday, July 11, 9:54 pm EST. Metals rose today, are up a bit more tonite overseas, and the miners had another decent day today, for the most part. At best, I think we are looking at a rather mild relief rally, but until I look at each chart, I won’t know…
Charts, speak to me!
The candlesticks, by and large, are bullish hammers, and are a continuation of the bullish engulfing candlesticks from Monday. However, volume dried right up again, big time, to be 26% below the 50-day average… and so, as I said yesterday, traders, trying to time the turn, bought Monday, but not with great conviction. They and/or perhaps others, involved themselves further today, but with even less conviction.
The hope is there, in that there is participation and involvement, but the commitment is little more than an inch deep. They’re willing to give metals a chance, and the benefit of the doubt, for now, but I would think that if the metals reverse back down, these current participants, not seeing their speculation paying off, would pull the plug and get out quick.
Traders studying the charts, but not buying in… like me, are now looking to see if it’ll begin to run, gathering momentum, or flop and result in more pessimism and skepticism. Risk looks to have been just about all wrung out, so will we genuinely rally? The jury is still deliberating! I’ll wait for a verdict. You can get in, with tight reins on your position, like these others who are moving in now, but don’t get caught flat-footed, should it turn against you!