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-- Posted Monday, 21 April 2003 | Digg This Article
June Gold: Close = $333.90, +$6.3
There must have been quite a bit of pent up energy in the veins of gold traders, either that or they were just bored and took the opportunity of thin trading conditions to satiate their appetitive for action. Gold shot higher today, reaching levels unseen since the end of March. With the US markets having been closed on Friday, and with London markets closed today, volume was perhaps a bit light, and reflected in the ease in which bulls were able to run over the bears. The aftermath of the war in Iraq will be messy for sometime. The foreign affairs landscape is assuredly going to remain chaotic, to say the least, and sure enough, gold is remaining cautiously supported. There wasn’t much direction from equities or the dollar, and in fact, the dollar actually gained over 30 points and gold was still able to muster the strength for a bounce. Energy prices have come off their peak and you’re probably already noticing lower prices at the pump. Gold isn’t likely to march forward each session without ever looking back, so look to pullbacks as buying opportunities. Initiate positions with a favorable risk/reward ratio and try to filter out the static. Prices are now above the 5, 10 and 20 period moving averages, but look for another close above those averages for continued strength. Meanwhile, bulls that bought with us the other week on TradeScope are now in the drivers seat. Move stops to lock in profits and let’s sit back and wait for more. The 347 area would be the next target on the high side. Be sure to watch TradeScope daily. Remember, with futures and options one can be short or long, feel free to contact me to discuss trading strategies. Each contract/option = 100 ounces, a $1 move in a futures contract = $100.
To open an account and receive trading recommendations on gold futures or options contracts (also stock indices, energies, currencies, etc.), or to use PaperTrader Online contact me at erik@altavest.com. Visit www.altavest.com to request a Free Starter Kit. Keep in mind that there is risk of loss in all trading.
July Silver: Close = 454.9, +6.5-cents
There has been a lot of chop near the 450 area, and now, with help from gold, silver bulls are making a stand and have pressed prices to fresh monthly highs. Just as with gold, the volume in silver was likely light, which allowed one side or the other, in this case the bulls, to grab the reigns and not let go. The chart shows technical indicators are now mixed to bullish. If long from the last week or so, lock in profits and exit on a close below 448.50. The next resistance area is near 464, which is the bottom of a recent gap. Certainly there is room to rally, but recent history has shown us that silver will be more apt to rally only on the tail of a gold rally. Each contract/option = 5,000 ounces, a 1-cent move in a futures contract = $50. Contact me anytime to discuss strategies to fit your needs.
To open an account and receive trading recommendations on silver futures or options contracts (also stock indices, energies, currencies, etc.), or to use PaperTrader Online contact me at erik@altavest.com. Visit www.altavest.com to request a Free Starter Kit. Keep in mind that there is risk of loss in all trading.
-- Posted Monday, 21 April 2003 | Digg This Article
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