OK, The Turd has re-assumed the position. Fun and games are over and, in all seriousness, we face a critical week in the PM pits.
We had a terrific day today given the selloff in both crude and copper. Silver made its first approach at $29.50 before settling back and gold closed above $1350 for the second time in three days. Here are updated views of both...silver from a 3-hour perspective and gold in a daily:
First, with today's close behind us and with "Happy Tuesday" ahead of us, I'd expect gold to trade higher overnight and tomorrow and begin moving into the congestion between 1360 and 1380. Initially, Blythe won't have to work too hard here as there will be plenty of non EE-related selling in that zone. Once the old support/resistance area of 1365 is taken, though, you can expect The Monkeys to fight like hell as we approach 1380. Failing there, the chart begins to take on a very positive look and fresh longs will come in from all corners. 1400 will fall and we'll be pushing up against 1420 real quick.
On the flip side, if we lose momentum here and move back down through 1350, we could get rolled all the way back toward 1335 and that would suck.
In silver, Blythe's position is much more immediate and tenuous. The rally from the bottom has been powerful and consistent. If its not stopped soon...meaning this week...we will burst back through 30 and, from there, make a run at the old highs from very early January. I made light of this last week in my latest "movie", which I quickly banged out over about an hour back on Tuesday. If you missed it, I suggest you watch it. It seems to be playing out quite well.
(On a side note, some of the YouTube comments on this one killed me. That "I think a lot of myself" and that I'm "self-serving". Really? Really? This is Turd's World, for pete's sake. What do you expect?:)
Anyway, I'm slowly getting caught up. This evening, I'll to post a series of links to things we both may have missed over the weekend. Until then, keep an eye on those PMs. This truly is a critical week. TF