Friday, August 12, 2016

Weak Setups In Precious Metals (SLV, $HUI)

Precious metals continue to dominate many people's thinking and focus but recently in the low-volume month of August some pivots have been noted. Jack Chan has been a particularly vocal proponent of a 'healthy' retracement in gold and Clive Maund recently wrote ("Signs Are Silver Bull Market Is Consolidating") about some downward pressure in silver, as have I, and it could be that we are witnessing the beginning of it now (I think I have written these exact words once already in the last four months). A bear flag setup appears to be developing in Silver ETF SLV and the Gold Bugs Index $HUI appears to be putting in a bearish rising wedge.