-- Published: Sunday, 13 November 2016 | Print | Disqus
By Warren Bevan
What a week!
Markets were wild, moving huge, beginning Sunday evening in the futures market and not really calming down until Friday.
I remain in cash waiting for setups, which are starting to form now.
I knew the election would create massive volatility but I had no idea which way it would go, it turned out to have gone both ways.
To try to trade it would have been a coin flip and that isn’t my style, so the not so secret, secret to trading certain volatility, is to not trade it and stay in cash.
As for the metals, they were wild also, seeing gold up $50 the night of the election, only to fall back and end the week on an extremely sour note.
Gold was hammered and ended the week off by 6.15%.
Quite the wild week indeed seeing gold so strong, only to fail and break hard, below the 200 day moving average on heavy volume.
No great at all but things are still settling out from the election results so it’s too early to say the sky is falling.
The long-term monthly chart still looks fine to continue higher but this volatility needs time to settle down first.
Let’s see how support at the $1,210 to $1,200 area holds and I do expect it to hold.
Cash is a position while we wait for easy, more reliable setups.
Silver fared a bit better losing only 5.38%, but breaking the 200 day moving average.
Silver is holding the $17.15 support level well so far but time will tell.
Platinum was hit, losing 6.10% and quickly nearing support at $930.
Heavy volume on the downside isn’t great but everything is a bit out of whack this week after the elections so let’s just wait and see how things settle out in the week ahead.
We should see a clearer picture of trends develop in the week to come.
The outlier this week was palladium who soared 9.59% for some reason.
Strange to see palladium so strong but not much makes sense these days.
We stopped dead at the $700 resistance level, for now, above, is resistance at $725.
Let’s see how the week ahead goes but a little rest at $700 should see a move to $725, then some rest and then another leg higher, if the chart works as it should anyhow.
I hope you have an excellent weekend and you can find out more about my specific stock pics at http://wizzentrading.com/?page_id=7363
Warren
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-- Published: Sunday, 13 November 2016 | E-Mail | Print | Source: GoldSeek.com
