Lower Prices in Metals: The Waiting Game

The waiting game in metals continues. As prices push ever lower, trader sentiment continues its decline setting up a near-perfect storm scenario for metals in August and September.

Students of market history are well aware of the fact that metals and in particular gold tend to make upside gains in September, and that some of these gains have historically been quite large. Edward R Dewey, often referred to as the “father of cyclical analysis” claimed that cycles are “the mysterious forces that trigger events”.

If this is the case, then many of those mysterious forces are now at work creating the fundamental backdrop that will fuel the next seasonal rally. We are watching and waiting for opportunities to buy all the precious metals that trigger. We suggest you do the same. No changes in recommendations this week.

One interesting technical note this week is the appearance of inside bars in palladium and gold. We will update on these important patterns and their meaning for the trend in precious metals next week.

gdxj shows inside bar 8-2-15 pall shows inside bar 8-2-15 copx mac 8-2-15 pplt mac 8-2-15

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Subscribers, visit our Metals category for specific trade recommendations & further commentary.

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