Precious Metals: A Pressure Cooker

As we noted two weeks ago in Entire Precious Metals Complex At Major Resistance, precious metals and miners are all simultaneously at a rarely seen juncture on the price charts. The situation has evolved meantime and it feels like an enormous pressure cooker. In this update, we show the latest charts at the close of the week (February 21st). It appears that gold and silver are right above their important 200 day moving average, while platinum and palladium are at a major technical resistance ready to trend (break out or break down).

The gold chart has improved in the last two weeks. The important 200 day moving average was taken out earlier this week. From a technical point of view, the 200 day MA is important as lots of automated traders and speculators use this as a decision point. If this trend continues, one can expect a next major resistance near $1450, the point where is broke down last April.

gold_price_21_february_2014

 

Silver was lagging when we wrote our previous update. Meantime, the chart has improved considerably, as it broke out of a major resistance line and its right above its 200 day moving average. If this trend continues, one can expect a next major resistance near $25, the point where is broke down last April.

silver_price_21_february_2014

 

The picture in platinum and palladium is different than gold and silver. However, from a chart point of view both metals are ready to trend. The only question is in which direction. The charts show how platinum and palladium have moving towards a major resistance line and tested it three times. As a general rule of thumb, that is a condition for a trending move. Both metals are very close to retest the same resistance line. If (and that’s a big IF) they would be able to break out, it would be a very powerful sign of strength. The price levels to watch are $755 palladium and $1435 platinum.

palladium_price_21_february_2014

 

platinum_price_21_february_2014

 

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