Gold Market Wire
News, analysis and commentary for gold traders and investors
Silver Market Update
Metals' Rally Pauses
September 7, 2021 - (Gold Market Wire) - The rally in precious metals is taking a pause as the horizontal pivot point and overhead resistance converge to temper the recent rally.
Altogether, a not unreasonable place to pause, and a decent place to take profit on 1/3 of the trading position. Those who are more conservative can take 1/2 or 2/3 off the table and look for a move back to the trend line.
If we zoom out we can see the importance of this 'braking' level; horizontally.
Our decision to run the position, after our August 30 prognosis that the market was getting ready to run, has worked out well. If only trading could be like this all the time. Right now, we have to acknowledge that the uptrend, albeit from a washout low, is fairly steep, and we would be well advised to see a move back towards the (uptrend) line as a distinct possibility. Friday's gap up was enormous, and a back and fill, at the very least, is in order. If we make it back to $24 today, we will likely take our 1/3 - 1/2 shed length back on board. If the market just roars right through any correction - well then we ride with the remainder and re-assess.
We now see the convergence of the horizontal and resistance line as a marker to beat over the balance of the week.