Technical Analysis on Hot Commodities
Gold, Silver...

Chris Vermeulen
TheGoldandOilGuy
Jun 23, 2009

Precious metals like silver and gold have pulled back to support levels and trending sideways. This week will be interesting as we watch prices bounce or breakdown. The energy sector looks to be breaking down with more power as the bullish percent index for energy stocks dropped substantially last week.

Precious Metals Sector
The bullish percent index tells us the percentage of gold stocks which currently have a point and figure buy signal. Looking at the charts below it looks as though precious metals are trading at support. I am inclined to think we will get a bounce this week for gold and silver.

HUI:Gold Ratio
When this chart is trending up gold bullion and gold stocks are in favor and rallying. This ratio is currently at a support level which is pointing towards a bounce in the near term. This is a weekly chart so we could be 1-2 weeks away before it shows up on the chart.

HUI - Gold Stocks Index
This is an index of gold stocks. We saw prices break out and rally in May but now they are testing support. They could go either way quickly from here.

Gold Price Action - GLD Gold Fund
As you can see gold has pulled back from resistance is now at a possible support level. From looking at the HUI:GLD price performance and stochastic indicator at the bottom of the chart which is now turning up, it points to higher prices for gold in the short term.

Silver Price Action - SLV Fund
Silver is doing much the same as gold. It has pulled back from resistance and is now looking for a bottom. Gold and silver tend to rally and correct together so if gold starts to move higher this week I expect silver to go with it.

Active Traders Conclusion:
We are currently waiting for precious metals for find support. Whether it is at this level or lower I do not know for sure. But either way there will not be a buy signal generated until some type of support level has been found and momentum is trending up again.

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Jun 22, 2009
Chris Vermeulen
email: Chris@theGoidAndOilGuy.com
website: www.TheGoldAndOilGuy.com

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This article is intended solely for information purposes. The opinions are those of the author only. Please conduct further research and consult your financial advisor before making any investment/trading decision. No responsibility can be accepted for losses that may result as a consequence of trading on the basis of this analysis.

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