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Precious metals update: Gold is now at the backside of prior "Major" trendline resistance, see right hand side chart below. The bulls do not want to see a breakdown from here. I mentioned in the previous post on gold that the breakout to the upside from the "Descending Triangle" pattern was not a signal to buy for the intermediate to long term for me. I believe that risk is high in relation to probabilities of a new bullish trend developing in the daily timeframe. Those who think that this trendline break is the "all-clear" signal to buy are "rolling the dice" in my opinion. In the meantime, should the backside of this trendline hold as support, things start to get more interesting from a bullish standpoint and risk management perspective with my methodology.
Before I get to the analysis on Silver, I want to mention that the "weekend updates" along with a majority of the regular timely analysis that has been posted on this blog will soon be available for subscribers only.
I am starting a “swing/position” model portfolio and trade alert service based on my trading methodology. In this subscription the reasons/explanations for "entry and exit" will be shared in advance, along with the calculations for "risk management", "money management", and "position sizing". The follow up on "trade management" in regards to trailing stops, adjusting targets, reducing size, adding to a position, or closing out a position will be provided as well. I believe this type of format will add depth and value to typical chart or blog analysis. Doing a model portfolio will also enable me to provide signals beforehand and the outcomes afterward.
Applying the futures analysis to corresponding Exchange Traded Funds and/or leveraged ETF's may be provided at times. Included in this model portfolio will be analysis and trades in certain ETF's that do not have a corresponding futures contract such as mining stocks, energy and agricultural equities, foreign markets, and some foreign currencies. Options may also be used at times in the model portfolio to speculate or hedge.
Regardless of any track record, past performance is not indicative of future results.
In the meantime you can see a more detailed trader profile of mine by entering the name "Scotty" in the search box at www.topsteptrader.com/profiles. I also have another profile on "Linked In" under the name Scott Pluschau for those who would like to learn more about me.
I will be sending out another email to those on my list of potential subscribers in the coming days.
I have been away from my desk so I apologize for the different chart layout recently.
(Click on charts to expand)
The link to my previous post on gold can be found here: http://scottpluschau.blogspot.com/2012/08/what-kind-of-shape-is-gold-in-now.html
The pattern in Silver is similar to Gold's except for the fact that it has not broken through major trendline resistance yet, see right hand side daily chart below. I had felt there were decent probabilities for Silver to get a run above $28 to $30, but now is a time of caution for the bulls in my opinion. The profit taking target on the first triangle that was identified early on this blog has been reached. See left hand side 3 month daily chart below.
The link to my previous post on silver is here: http://scottpluschau.blogspot.com/2012/08/2nd-triangle-target-reached-on-silver.html
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Source: http://scottpluschau.blogspot.com/2012/08/precious-metals-update.html
