Tuesday 26 February 2013

Metals rebounding

The metals snapped lower in the morning - perhaps spooked by the looming Bernanke testimony, but the declines sharply reversed, and both Gold and Silver closed significantly higher. The metals remain in very broad down channels though.


SLV, 60min



SLV, daily



GLD, daily


Summary

Despite today's snap back higher, the precious metals remain in very broad down channels.

SLV needs to break back into the 30s..and GLD needs the 161s.

Those targets are still considerably higher than current levels, and it could be some weeks before we see those broken - if at all.
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What remains key is that the summer 2012 lows really aren't that far below. If that support fails to hold - at ANY time, there will very likely be a massive snap move lower, and one that would likely spell further weeks..if not many months of decline.