Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24
At These Levels, Buying Silver Is Like Getting It At $5 In 2003 - 28th Oct 24
Nvidia Numero Uno Selling Shovels in the AI Gold Rush - 28th Oct 24
The Future of Online Casinos - 28th Oct 24
Panic in the Air As Stock Market Correction Delivers Deep Opps in AI Tech Stocks - 27th Oct 24
Stocks, Bitcoin, Crypto's Counting Down to President Donald Pump! - 27th Oct 24
UK Budget 2024 - What to do Before 30th Oct - Pensions and ISA's - 27th Oct 24
7 Days of Crypto Opportunities Starts NOW - 27th Oct 24
The Power Law in Venture Capital: How Visionary Investors Like Yuri Milner Have Shaped the Future - 27th Oct 24
This Points To Significantly Higher Silver Prices - 27th Oct 24
US House Prices Trend Forecast 2024 to 2026 - 11th Oct 24
US Housing Market Analysis - Immigration Drives House Prices Higher - 30th Sep 24
Stock Market October Correction - 30th Sep 24
The Folly of Tariffs and Trade Wars - 30th Sep 24
Gold: 5 principles to help you stay ahead of price turns - 30th Sep 24
The Everything Rally will Spark multi year Bull Market - 30th Sep 24
US FIXED MORTGAGES LIMITING SUPPLY - 23rd Sep 24
US Housing Market Free Equity - 23rd Sep 24
US Rate Cut FOMO In Stock Market Correction Window - 22nd Sep 24
US State Demographics - 22nd Sep 24
Gold and Silver Shine as the Fed Cuts Rates: What’s Next? - 22nd Sep 24
Stock Market Sentiment Speaks:Nothing Can Topple This Market - 22nd Sep 24
US Population Growth Rate - 17th Sep 24
Are Stocks Overheating? - 17th Sep 24
Sentiment Speaks: Silver Is At A Major Turning Point - 17th Sep 24
If The Stock Market Turn Quickly, How Bad Can Things Get? - 17th Sep 24
IMMIGRATION DRIVES HOUSE PRICES HIGHER - 12th Sep 24
Global Debt Bubble - 12th Sep 24
Gold’s Outlook CPI Data - 12th Sep 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Palladiums Bullish Posture Bodes Well for All Precious Metals

Commodities / Gold & Silver 2009 Aug 30, 2009 - 01:08 AM GMT

By: Douglas_V._Gnazzo

Commodities

Diamond Rated - Best Financial Markets Analysis ArticleThe Economy - Congressman Ron Paul continues his relentless fight for freedom and liberty. The man is simply amazing. Words cannot express his actions. Here are three bills he recently introduced.

  • HR 3395: The Health Freedom Act
  • HR 3394: The Health Information Protection Act
  • HR 3396: The Congressional Responsibility & Accountability Act

The first two health bills can be read about here: Dr. Ron Paul Introduces Health Freedom Bills!

And the second is available in full here: Congressional Responsibility and Accountability Act.

Palladium

We are starting the precious metals off this week with a chart of palladium. Why? - as the chart shows, palladium rises from the lower right hand corner of the chart to the upper left hand corner - to a new yearly high: a bullish signature.

Palladium's bullish posture should bode well for the other metals, which will likely follow suit. In all rallies, one of the metals is first to begin the move. It is fascinating that palladium is the leader.

I could speculate ad nauseam as to “why” palladium is moving up, but it would all be pure conjecture.

Perhaps it's because it fell so far. Maybe the world economy is improving and the demand for palladium is increasing compared to supply.

Personally, I give the most credence to international hot money flows looking for a place to park.

Gold

Gold gained $1.20 for the week (+0.13%) to close at $954.90. As the chart below shows, gold has been trading sideways (consolidating) for months now.

A symmetrical triangle has formed and price is getting compressed tighter and tighter. Soon it will be forced to break out above, or down below its trend lines.

The weekly chart shows the inverse head & shoulders formation still intact. As long as the low of the right shoulder is not violated, the set-up exists, but needs to be fulfilled and confirmed.

The best seasonal period for gold is about to begin (fall to winter) and many in the gold community are expecting a rally to start, which very well may happen.

So, I ask the question: what would throw most off the bulls back? A hard move down to test the lows of the right shoulder comes to mind.

Silver

Silver performed much better for the week, adding 0.55 cents or +3.88% to close at $14.72. A positive MACD crossover occurred on the daily chart. If overhead resistance can be broken above and sustained, a nice rally may be forthcoming.

Platinum

Platinum is testing support at its lower trend line. Since last Nov. prices have moved from the bottom right hand corner of the chart to the upper left hand corner - a bullish signature.

A series of higher lows have been put in place. Now, a higher high needs to occur. Overhead resistance is marked by the horizontal white line.

It is interesting to note that palladium has taken over the leadership role from platinum. What it means I have no idea. Then again - they only pay you if you're on the right side of the trade; you don't get paid any extra for knowing why.

Gold Stocks

Gold stocks are starting to perk up a bit and had a pretty good week. The GDX was up just under a dollar (+2.24%) to close at 40.18. It is interesting to note that the gold stocks outperformed the physical metal this week.

The daily chart below goes back into 2008. It shows that the GDX broke above overhead resistance in late May, broke below it again in July, and has now broken above it once more, consolidating sideways in a compressing symmetrical triangle.

A series of higher lows have been put in place all year - now a higher high needs to be put in to validate the next leg of the bull market. The chart looks promising; however, I'm concerned that the gold stock sector is exposed to overall stock market risk.

The stock market is overextended and if a correction occurs, it could take the gold sector down with it. It is also possible that the gold stocks move counter to an overall stock market decline. Anything is possible.

The Hui Index has also formed a symmetrical triangle and price action is compressing. An outside reversal occurred on Thursday and there was follow through on Friday.

MACD has made a positive crossover and RSI is turning up. Overhead resistance is marked by the upper falling trend line (black diagonal line) and by the upper Bollinger Band (377.78).

Once again, a series of higher lows are in place; however, the August highs need to be bettered and then the June highs, and there is still further work after that.

The above excerpt is a small sampling from the latest full-length version (33 pgs) of this week's market wrap report, available only at the Honest Money Gold & Silver Report website. All major markets are covered with the emphasis on the precious metals. The markets are at important inflection points and there will be some big winners and losers just ahead. A free trial subscription is available by submitting a request to: dvg6@comcast.net.

Stop by and check out the myriad forms of information available, not only on investing, but on the history of gold and silver money as mandated by the Constitution, which is the answer to the present financial crisis, and one's own personal financial protection. In today's turbulent times, the return of your money may be more important than the return on your money.

Good luck. Good trading. Good health, and that’s a wrap.

 

 

Come visit our website: Honest Money Gold & Silver Report
New Audio-Book Now Available - Honest Money

 

 

Douglas V. Gnazzo
Honest Money Gold & Silver Report

About the author: Douglas V. Gnazzo writes for numerous websites and his work appears both here and abroad. Mr. Gnazzo is a listed scholar for the Foundation for the Advancement of Monetary Education (FAME).

Disclaimer: The contents of this article represent the opinions of Douglas V. Gnazzo. Nothing contained herein is intended as investment advice or recommendations for specific investment decisions, and you should not rely on it as such. Douglas V. Gnazzo is not a registered investment advisor. Information and analysis above are derived from sources and using methods believed to be reliable, but Douglas. V. Gnazzo cannot accept responsibility for any trading losses you may incur as a result of your reliance on this analysis and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Individuals should consult with their broker and personal financial advisors before engaging in any trading activities. Do your own due diligence regarding personal investment decisions. This article may contain information that is confidential and/or protected by law. The purpose of this article is intended to be used as an educational discussion of the issues involved. Douglas V. Gnazzo is not a lawyer or a legal scholar. Information and analysis derived from the quoted sources are believed to be reliable and are offered in good faith. Only a highly trained and certified and registered legal professional should be regarded as an authority on the issues involved; and all those seeking such an authoritative opinion should do their own due diligence and seek out the advice of a legal professional. Lastly Douglas V. Gnazzo believes that The United States of America is the greatest country on Earth, but that it can yet become greater. This article is written to help facilitate that greater becoming. God Bless America.

Douglas V. Gnazzo © 2009 All Rights Reserved


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in