I’ve been talking about gold and silver on this blog a lot lately. It is normally not my intention to focus so much time on one sector. But, the trading patterns for gold have been pretty predictable lately, so gold has been on my radar.
On that note, if you’ve followed my comments here, or in any of the other media I’m involved with (BNN, Investors Digest, Moneyletter), you know that I’ve been looking for a re-entry point at or below $1700. I’m looking at about $1680 as an ideal point of support – but it could be anywhere near or above that level. The stochastic momentum oscillator, which has been a great indicator for gold’s recent action, is well into oversold territory. We could see a buy signal come through for gold at any point now — perhaps today or over the next few days. Look for the “hook” and crossover of the faster %k line as a potential entry signal.
Silver, too, looks interesting. Technical support lies anywhere from $29 to $31. Stochastics is on the verge of signaling for that commodity as well. Both silver and gold will enter into a seasonal period of strength in November –so the ducks are lining up. To me, this looks like it may be an opportunity to buy gold and/or silver. I expect to re-enter the trade very shortly.
As an aside – I continue to encourage readers of this blog to post comments regarding the topics covered, and to offer suggestions for my weekly sector coverage. If you are new to this blog, I try to cover the broader markets early in the week (usually Monday’s) and then I like to dig into a sector of interest later in the week (usually Thursday or Friday). I’m interested in hearing what readers would like to see covered for my end-of-week sector coverage.
Thanks for reading my blog, and happy trading.