Gut Bomb – TF Metals Report
First up, it seems like it has been so long since I’ve:
- Made a short-term prediction
- Been right
That I feel compelled to tout this one:
Submitted by Turd Ferguson on August 15, 2012 – 7:50pm.
Kinda gotten out of the habit of making short term predictions but here goes.
I think the metals look to move higher overnight/tomorrow. Crude is currently basing above the old double top at 94.25 and the grains are stronger, too. Eventually this will translate onto the short term metals charts that look increasingly positive. A move through the 100-day MA in gold (near 1612) would send price back toward 1620 and beyond.
Let’s just see now if gold can get above 1620-25 and if silver can finally get through 28.20. The algos will likely game it back down lower later today but we’ll see. I spoke with Winston again this morning and he assured me that demand for physical metal remains “robust” in London and that “every dip below 1600″ is being met with increased orders in size. As this physical market continues to create a rising floor in the paper market (see the higher lows on the charts below), eventually this buying pressure will burst the caps at the top of the now 100-day price ranges. WHEN that happens, momentum-chasing algos will flip long and we will accelerate to the upside. This is inevitable and only a matter of time.