The German team have been chopped up in this difficult short term trading range but they are sticking to their short and medium term call ie bullish both Silver and Gold. Key levels gold to hold (and trade off for the bargain hunters) is 1672 down to 1661 at an extreme.
I would agree with their basic technical view and add that the bullion, as an asset class, is displaying a massive short term under performance from her usual correlation pairs. This makes me extremely short term bullish as well as a medium and long term bull here, at this stage in the chart.
I don’t have time to display the charts now but check gold’s performance in the last month to Oil – a usually good correlated instrument. Then check her to copper. Another good correlation instrument. Then check her to her inverse correlations like the US$. Then check her to the macro fundamental news flow. Also check her to “risk on” instruments like the miners and ‘risk on’ equities. The bullion is oversold and significantly under performing. I love the bullion here and now. I’m not advocating an expansion of balance sheets here and now due to the over bough ‘risk on’ conditions but i would advocate careful additions to bullion positions and over weight the asset class vs risk on equities due to her under performance. Its all probabilities and here and now the probabilities are running in your favor on the bullion.
Whether bear or bull, the bullion appears to be reaching key technical levels. This makes it ‘interesting’ both sides of the fence.
I therefore include this near term tech analysis by INTC FC Stone. (One of the industries largest commercial commodities trading houses). A good report, in my view.
Macro wise the BOJ announcement on Friday with obvious fund flow implications.
http://www.mining.com/japanese-pension-funds-break-with-tradition-by-turning-to-gold-74800/
All the best Rich
(5 votes, average: 5.00 out of 5)
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