{"id":241,"date":"2010-05-27T12:31:59","date_gmt":"2010-05-27T16:31:59","guid":{"rendered":"http:\/\/www.silver-investor.com\/blog\/?p=241"},"modified":"2018-06-10T10:58:21","modified_gmt":"2018-06-10T10:58:21","slug":"the-gold-silver-precious-metals-correction","status":"publish","type":"post","link":"https:\/\/www.themorganreport.com\/blog\/the-gold-silver-precious-metals-correction\/","title":{"rendered":"The Gold & Silver Precious Metals Correction"},"content":{"rendered":"

It\u2019s been an exciting week for traders as volatility levels are through the roof and the broad market is moving up and down like a yoyo. You cannot take your eyes off the screen if you have a large amount of money invested as you can quickly find yourself with a large profit or loss in the matter of minutes\u2026.
\nAlthough we have seen stocks jump around the past few days precious metals have held strong with very little volatility. This is because of the economic fears looming for the US and other countries of possible financial collapse. This fear is helping to boost gold and silver prices because they are seen as the safe haven. Also we are seeing money move in the US dollar because the country is still seen as a leader in many ways helping to boost the US dollar.
\nBelow are a couple charts on Gold and Silver ETF\u2019s showing the end of last years rally and the correction in prices which are now looking to setting up for another leg higher.
\nGLD \u2013 Gold ETF Trading Vehicle \u2013 Daily Chart<\/strong>
\nI called this chart \u201cThe Golden Correction\u201d because it literally is. We saw prices rally late in 2009 finishing off with a parabolic spike which we know is not sustainable and almost always results in a VERY sharp drop. This correction unfolded as planned with an ABC retrace which shakes out weak positions. We then we saw a reverse head & shoulders pattern form which again also shakes out weak positions. Once the neckline was broken from the reverse H & S the new up trend was started providing a couple trading opportunities for us along the way. The most recent low risk entry point can be seen on the chart as gold prices dropped back to a key support level.
\n\u00a0\"\"<\/a>
\n\u00a0
\nGold Futures Price \u2013 60 Minute Day Trading Chart<\/strong>
\nGold has been showing some very bullish price action the past week forming several mini bull flags with confirming volume levels. I think we should see gold pop another $5-10 bucks in the very near future if not continue higher for several days.
\n\u00a0\"\"<\/a>
\n
\nSLV \u2013 Silver ETF Trading Vehicle \u2013 Daily Chart<\/strong>
\nSilver formed much of the same patterns as gold but with much more volatility. Also silver has yet to break the 2009 high which is surprising but with a large part of silver being use for industrial purposes it does make sense as the economy is not as strong as it was thought to be in 2009. Silver carries much more risk when trading because it has more random moves and increased volatility.
\n\u00a0\"\"<\/a>
\n
\nMid-Week Precious Metals Trading Conclusion:<\/strong>
\nIn short, gold and silver are in an uptrend and looking strong. Both are currently trading at short term resistance levels on the daily chart which has caused them to stop moving up today (Wednesday May 26th<\/sup>) but on an intraday basis they look solid and could break though these resistance levels.
\nThat being said buying way up here adds a lot more risk because a good chunk of the move has already been made and if prices do roll over and start heading back down the next support level is several percentage points away for placing a protective stop with the proper amount of wiggle room.
\nIf trading Gold, Silver and Index Futures and ETFs interested you check out my trading services at www.TheGoldAndOilGuy.com<\/a>
\nChris Vermeulen<\/p>\n","protected":false},"excerpt":{"rendered":"

It\u2019s been an exciting week for traders as volatility levels are through the roof and the broad market is moving up and down like a yoyo. You cannot take your eyes off the screen if you have a large amount of money invested as you can quickly find yourself with a large profit or lossMore<\/a><\/span><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[121,89],"tags":[],"yoast_head":"\nThe Gold & Silver Precious Metals Correction<\/title>\n<meta name=\"description\" content=\"The Gold & Silver Precious Metals Correction\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.themorganreport.com\/blog\/the-gold-silver-precious-metals-correction\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Gold & Silver Precious Metals Correction\" \/>\n<meta property=\"og:description\" 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