A Rally Cometh?
Very nice action this morning. Can we hold these gains and extend? I think so.
<EDIT> Obviously, this was typed much earlier today but, with the site down all day, I'm just posting it a/o 7:17 pm EDT.
We had a little trouble with the servers this morning. I'd better type fast and get these charts posted before the site goes down again. I'll dispense with the news items for now and simply cover today's action.
First of all, here's the main thing that I'm looking at. Notice that, on these daily charts, basing patterns similar to what we've seen twice already since the October highs are being traced out. IF I'm right...and the current CoT structure helps to aid my confidence...the metals are about to rally back toward their trendlines. Of course the key is, in the intermediate term, will they fail for the third time at the trendline? For now, let's not put the proverbial cart before the proverbial horse. Let's just see if this rally can get some legs and extend higher.
And on these six-hour charts, you can see gold breaking UP and through its recent range, no doubt on the backs of some considerable short-covering. Again, now we need the metal to hold these gains and stay above the range. For gold, that's 1585. In silver, the 3-week and $1 range of 28.40-29.40 is still intact and there's really no reason to get excited until/unless silver can close above 29.40 and begin to draw away.
OK, that's all for now. Hopefully the site is back up for good and we won't have any more outages. Fingers crossed!