Thursday, May 27, 2010

Metals are giving mixed signals while Gold's trend is still intact

Platinum broke the trendline support but still above the long term horizontal Support which is key to its present trend.

Palladium had the most Bullish trend and the steep selloff is giving sharp alarm of exit. The horizontal Support is key to the current direction just like in Platinum but the signal here is far more acute.

Gold - the ultimate safe haven... Still trend channel is intact and holding above 2008 Highs. However the Leaders in Metals complex are in alarm mode and here is a real test for the dominant assumption that Gold will save your wealth.

Copper is the prime industrial indicator and as such we gotta be prepared to see industrial contraction since it broke the prime trendline support and now as in the first 2 metals the horizontal Support is key to the market sentiment and needless to say a breach below would be a major Bearish sign.

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