From the Desk of Ian Culley @IanCulley
I’m fed up with precious metals.
I’m tired of all the failed breakouts and the sideways chop.
So, please, spare me the silver-surfer stories about undervalued silver or how it will outperform gold 16-to-1 during the next bull run.
I’m tired of it – all of it!
But the diehard gold bugs continue to rally the troops – and maybe they’re on to something.
After all, gold is trading less than a hundred bucks from its all-time high. Is there still a chance for a clean breakout soon?
Let’s take a cold, hard look…
Check out gold’s four-year base:
I can’t lie: This is the type of base that gets me out of bed in the morning.
It’s a classic inverted head-and-shoulders with an abbreviated right shoulder. It oozes demand!
Plus, momentum is in a bullish regime. This thing looks ready to rip!
But I’m over it.
Funny how that works. The markets are here to test us, causing maximum pain whenever possible.
So is the market just wearing me down?
Gold futures are coiling within a well-defined symmetrical triangle just below a critical resistance level…
And I can’t stop thinking about Chinese stocks.
Seriously, will they ever stop falling?
They’re at a logical spot to turn these around. It feels like now or never for these names…
Let’s get back on topic…
The bearish divergence on the 14-week RSI does not bode well for a breakout anytime soon (as if I were expecting one).
Of course, we all know momentum divergences have a way of working themselves out.
The next break above 2,089 could be the one…
Or it could be a dud.
That’s the beauty of the symmetrical triangle: It doesn’t carry a directional bias.
I wouldn’t hold your breath for a breakout in gold.
I know I’m not. But I set my alerts.
Stay tuned.
Click here to watch this week’s Gold Rush Video:
Thanks for reading.
Let us know what you think. We love hearing from you.
And be sure to download this week’s Precious Metals Report below!
Allstarcharts Team
