Gold Market Wire
News, analysis and commentary for gold traders and investors
Silver Market Update
Silver Approaches The Channel Top
November 12, 2012 - (Gold Market Wire) - And so we reach Friday of a watershed week for the Precious Metals market. The action has been 'huge', and we are now reaching the top of the channel. We wouldn't be surprised for this Friday to see so re-grouping of the market by moving to the downside slightly. As for trading length, some lightening up may be in order.
We've identified our place to remove some length at the power uptrend. Firstly, we are near the top of our channel; a channel that has been re-confirmed by this morning's action out of Europe. Secondly, the vertical nature of the power trend and and the fact that we are in Friday should create a place to take 1/3-1/2 off of the trading length that we established on the Wednesday pullback. As always, we must be prepared for volatility going forward - that is the nature of a true bull market. If we drop precipitously, and you move quickly to get out (resting stops, please), be prepared to re-load.
Lastly, any significant pullback toward the lower half of the channel should now be met with the building of a larger core position. We remain of the opinion that some of these lower levels may be touched for something approaching the 'last time in a long time'. We won't get forever to build a stronger core, so don't chase up here... but get the trigger finger ready if we start to work lower.