First off, if I am a precious metals bear I am just a bit taken aback that my post about the short-term bear flags in gold and silver was received relatively well at both Twitter and Stocktwits (relatively, because my stuff mostly seems to fly below the radar compared to more popular stuff). Luckily, I am not a precious metals bear. I am a “precious metals in a needed and probably healthy correction” guy.
Anyway, the futures chart shows gold’s mini bear flag within a larger bull flag above the 1st support level, toward which the 200 day average is rising. The signaling is that a counter-cyclical signal took place last summer and with the heaping helping of market optimism that kicked in over recent months, that signaling is in consolidation. Gold’s major daily chart trend remains up.
Silver’s bear flag is rising toward resistance. As noted before, silver has done good work in already Fib’ing over 50% of the rally and I think the majority of the correction is done, in price but also in time. Silver’s major daily chart trend is still up, despite the volatility.
The above are the counter-cyclical metal and Transvestite metal (cyclical and counter-cyclical characteristics). The cyclical Amigo broke above a trend line but should hold support here to keep prospects of a continued Q4 2019 inflation/reflation trade bounce going. It’s right at the 50 day average. The major trend is still down for Doctor Copper.
The weekly chart shows the implication of a failed rally, if applicable.
And there you have this week’s message from the 3 Metallic Amigos. Inconclusive all around! Great.
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