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Monday was another day when the precious metals showed independent strength. The Dow, S&P, crude oil and many commodities were lower, but the price of gold and silver rose. We are still moving into a “fear event” as I discussed on King World News.
We got the pullback in the precious metals that I expected. My gold recommendation was filled, but silver was not.
That pullback was probably the final test of support. So the key resistance and support levels are $1650/$1580 and $30/$28. Gold and silver may trade within these ranges for a while, but once these resistance points are hurdled, the next upside leg of this decade-long bull market begins. And I expect it will be spectacular, given that prices will be rising in a fear event.
Gold
1) The position bought at $1602.00 on June 1, 2012 was sold on June 7, 2012 at $1604.00, which was its stop-out point. Profit: $2.00
2) The position bought at $1620.50 on June 1, 2012 was sold on June 7, 2012 at $1597.00, which was its stop-out point. Loss: $23.50
3) Long one position bought on June 7, 2012 at $1,580.00. Stop-out point: sell at an intraday stop-out point if Comex spot gold trades at $1,584.00.
4) Buy one position if the Comex spot gold price trades at $1,602.00. Stop-out point: sell at an intraday stop-out point if Comex spot gold trades at more than $27.00 below your purchase price.
5) Buy one position on the first Comex close in New York above $1650.00. Stop-out point: sell at an intraday stop-out point if Comex spot gold trades at more than $30.00 below your purchase price.
Silver
1) The position bought at $29.476 on June 6, 2012 was sold on June 7, 2012 at $28.17, which was its stop-out point. Loss: 35¢
2) Long one position bought on the Comex close in New York on June 12, 2012 at $28.943. Stop-out point: sell at an intraday stop-out point if Comex spot gold trades at $28.67.
3) Buy one position if the Comex spot silver price trades at $28.45. Stop-out point: sell at an intraday stop-out point if Comex spot silver trades more than 35¢ below your purchase price.
4) Buy one position if the Comex spot silver price trades at $29.20. Stop-out point: sell at an intraday stop-out point if Comex spot silver trades more than 35¢ below your purchase price.
5) Buy one position on the first Comex close in New York above $30.00. Stop-out point: sell at an intraday stop-out point if Comex spot gold trades at more than 35¢ below your purchase price. View all Trading Comments >>
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