E The Odds Favor Lower Prices For Metals And Miners In June

Several charts are at make or break points, and we could see significant price movement in the coming weeks. The dollar may have completed the bullish falling wedge pattern, proposing an upward breakout. The S&P 500 is close to breaking above its consolidation pattern. And Silver is threatening a significant support level, that if broken could lead to sharp selling.

Miners have met the minimum obligation for a rebound while gold and silver have not. Gold needs a daily close above the 10-day EMA ($1,234) to register as a bounce. Failure to close above the 10-day EMA will keep downward pressure on prices (the grind lower).

I’m going to remain on the sidelines until a clear risk-reward structure appears. The odds favor lower prices for Metals and Miners in June. However, miners rallying through their resistance zones would jeopardize our outlook.

-US DOLLAR WEEKLY- This is the third weekly bullish engulfing pattern this year. It’s make or break time for the dollar. The falling wedge pattern suggests a rally to new highs, potentially reaching 108+. A weekly close below 98 would invalidate the setup. Closing above the upper trendline will confirm a breakout.

-US DOLLAR DAILY- Prices have been consolidating all year. I expect a trending move once prices break free from the pattern.

-GOLD WEEKLY- Both stochastics lines (red/black) should drop below the 50-level before striking a 6-Month low.

-GOLD DAILY- Prices almost rallied to the 10-day EMA but still failed to close above $1,229 to form the swing low. The bounce has been anemic. Prices should meet significant opposition between $1,245 and $1,255 if they continue to rally.

-SILVER WEEKLY- There is substantial support for silver around $16.00. Breaking below it could lead to sharp selling.

-SILVER DAILY- Prices formed a swing low and are approaching the 10-day EMA. Resistance resides between $16.80 and $17.00 if prices continue to rebound.

-GDX- Prices are in the resistance box. I still think they will rollover at some point. Rallying through the box and closing above the 200-day MA would jeopardize our forecast.

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