NEW YORK (TheGoldAndOilGuy.com) -- We don't hear much about gold and silver anymore on the news. This time last year you could not go five minutes without a TV or radio station talking about them. Why is this? Simple really, precious metals have been building a stage 1 basing pattern for the last 12 months. This boring sideways trading range is how the market gets most of those long holders out of an investment before it starts another move up. The saying is "If the market doesn't shake you out, it will wait you out."We all know time is money so the above statement makes a lot of sense doesn't it? Instead of having your money sitting in an investment that has clearly displayed a large sideways range with month and possibly years before any significant breakout will occur, why would you want their money in it doing nothing? There are other opportunities which you could be putting your money into that could generate more gains until the precious metals sector sets up with a high probability trading pattern. The good news is that gold, silver and precious metal miner stocks are forming a very large stage 1 accumulation pattern on the weekly chart. This points to a multi month rally in prices if they breakout above our resistance levels. Gold and Gold Miner Stocks Weekly Analysis: The chart below shows a lot of analysis and to the untrained eye this may look messy and confusing, so take your time to review it. In short, it shows sideways price patterns using the previous highs and lows for support and resistance levels. The analysis shows the shift in prices from bearish (down), to neutral (sideways). The exciting part about this pattern is that a new bull market should emerge if my analysis is correct. Now, I'm not talking about 5% to 10% move here, I'm talking about a multi-month and possibly a year-long rally in precious metals that could allow some individuals to retire early if played properly... A break above our red dotted resistance lines should trigger aggressive buying in gold miners along with physical gold bullion.
Precious Metals and Miners Trading Conclusion In short, I favor trading the miners over physical bullion simply because the charts show much more profit potential than if one was to buy the bullion exchange traded funds GLD and SLV. The market seems to be setting up for some very large moves in 2013 and members of my trading newsletter should do very well. At the time of publication the author held no positions in any of the stocks mentioned. Get Chris Vermeulen's Trade Alerts at: TheGoldAndOilGuy.com Follow @TheTechTraders