Precious Metals Rally Losing Steam?

July 27, 2009

          For the sixth day, gold failed to break through $960 resistance. We've had a strong rally in gold and silver since the bottom on July 13th. Silver is up more than $1.50 and gold $50. Silver has been making slight gains each day the past week, but gold has not been able to get above $960. Typically, this failure to break through resistance precedes a correction. In fact, I can't remember the last time gold was stuck in this tight of a trading range for six days. While there is a possibility we'll see more gains in this rally, it is more likely that we are nearing a short term top.

          I have placed stop sell orders on my trading positions to protect gains accumulated in the last two weeks. If gold manages to break out, then I'll move my stop orders up. This was meant to be a short term trade and I am still expecting that we'll see a better buying opportunity in the next several months.

Best wishes on your future and investing and God Bless,

Timothy Silvers

 

Disclaimer: This article represents the opinions and personal views of Timothy Silvers and is not intended to be investment advice. If you choose to use this analysis for your personal trading, Timothy Silvers assumes no liability for the direct or indirect losses you may incur due to using this article to make your investment decisions. You are totally and completely responsible for your own investments. At any given time, Timothy Silvers or his friends and relatives may have positions in silver related investments that may or may not follow the recommendations contained in this article. The information in this article may not be completely correct and accurate. Even though Timothy Silvers has done his best to review the content and accuracy of this article, he is in no way liable or responsible for any mistakes or omissions.