Precious Metals Analysis for Gold & Silver

By Chris Vermeulen
GoldAndOilGuy.com
Email: chris@thegoldandoilguy.com

Thursday - July 9, 2009

The broad market including commodities is under some serious selling pressure as traders and investors panic to exit positions. Today small caps stocks and commodities took the majority of the beating. Although the market looks bearish at this point, I do think there is a very good chance of a bounce Thursday and Friday, but I figure we will see selling into the close on Friday as traders stay in cash over the weekend.

This week's price action for all our funds provides us with new technical analysis on the charts. Support levels were broken and we are now in free fall mode for these four commodities. I do like the way the charts are setting up. The bigger and quicker the drop in price the better the odds that the next setup will follow through for a profitable trade.

Gold Precious Metal - GLD ETF Fund

Gold confirmed the breakdown with a 1.5% drop today. We continue to wait for prices to stabilize and provide an opportunity to enter long. We are 5-10 days from any possible setup.

Silver Precious Metal - SLV ETF Fund

Silver has had a nice sharp pullback from the May high which we expected. We continue to wait for more price action to unfold to generate a low risk buy signal.

Technical Sector Timing of Precious Metals

So far this week the market has caused some serious damage to the technical's. Overall the market looks over sold and I am expecting a positive day tomorrow. The price action today looked very much like panic selling and that is generally when we see stocks and commodities rebound for a couple days.

The S&P500 penetrated a critical support level intraday but closed higher. One more down day in the market and we will most likely see program selling step in which wi ll force stocks lower for another couple days triggering even more panic selling.

We continue to let the market unfold analyzing the technical's on a daily basis. Waiting for a low risk trade can be a slow process but this down time allows us to learn and fine tune our technical analysis skills even more.

Published at Investorideas.com Financial Article Feed : http://www.investorideas.com/RSS/feeds/II-Art.xml
About InvestorIdeas.com: One of the first online investor resources providing in-depth information on renewable energy, greentech and water sectors.

Become an Investorideas.com Member
Gain Exclusive Insight on Leading Sectors, Global Trends, and Insider Trading Ideas, News, Articles, renewable energy and water stocks directory.
Learn more: http://www.investorideas.com/membership

Sign up for free newsletter, stock and sector news alerts at Investorideas.com
click here: http://www.investorideas.com/Resources/Newsletter.asp

Disclaimer: The views and opinions expressed in the research published are those of the individual companies and writers and not necessarily those of Investorideas.comŽ, or any of the industry sector portals . At the time of publication, writers may hold positions in the stocks or companies mentioned.

Investorideas.comŽ or any of the industry sector portals cannot assure accuracy of the research presented. Investors are encouraged to research and verify facts and under no circumstances is Investorideas.comŽ endorsing the content as a recommendation to buy or sell stock.