Gold, Silver Approach Major Long-Term Support
Gold Mining Stocks - Monthly Chart:
If you want to see a scary chart, look at what could happen to gold-miner stocks. This very could be happening as we speak and why I have been pounding the table for months no to get long gold, silver or miners until we see complete panic selling or a bullish-basing pattern form on the charts. We have not seen either of these things take place although panic selling is slowly ramping up this week.
There will be some very frustrated gold bugs if they take another 33% hair cut in value.
Precious Metals Trend and Trading Conclusion: In short, the precious metal sector remains in a cyclical bull market. That being said and looking at the daily charts the prices have been consolidating and are in a down trend currently. Until we see some type of bottoming pattern or price action form, it is best to sit on the sidelines and watch the emotional traders get caught up and do the wrong thing. The next two weeks will be crucial for gold, silver and miner stocks. If metals cannot find support and close below the key support levels, things could get ugly fast. This article was written by an independent contributor, separate from TheStreet's regular news coverage.
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