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Nov 22, 2023

Metals on the Move: Gold, Silver, Uranium and Copper

'Metals on the Move' is an exclusive newsletter brought to you by Gareth Soloway, President of VerifiedInvesting.com in partnership with Kitco News. To get actionable trade alerts and expert chart

'Metals on the Move' is an exclusive newsletter brought to you by Gareth Soloway, President of VerifiedInvesting.com in partnership with Kitco News. To get actionable trade alerts and expert chart analysis FIRST, sign up now and power your trades!

Investing and trading in the financial markets require a keen eye for patterns and trends. In this article, we'll delve into the recent developments in various market charts and analyze potential opportunities for traders and investors.

Chart 1: URNM - Sport Uranium Miners ETF

The chart for URNM, the Sports Uranium Miners ETF, has recently shown an interesting turn of events. Breaking free from its MACRO downward sloping resistance line, URNM has shattered the shackles that held it back. It's worth noting that URNM had faced rejection on four occasions before finally surmounting this macro resistance. The breakthrough is undeniably significant, as the ETF made a substantial upward move post-breakout.

Currently, the focus is on a re-test of the prior support, now acting as resistance. This situation can be likened to revisiting the scene of a crime before embarking on a higher ascent. The projected price range for this re-test hovers between $32 and $34. Should the ETF manage to secure a higher bounce from this re-test, the next obstacles lie around $47 and $50 in terms of resistance.

Chart 2: Copper (CFD’s on Copper)

Copper, a vital industrial metal, is currently tracing a local wedge pattern on the chart, specifically a symmetrical triangle. Notably, the metal has recently rebounded from its local upward sloping support line. This wedge pattern has been taking shape over an extended period, with the support and resistance levels converging, creating a sense of impending movement.

Anticipating the pattern's resolution, it's essential to consider the potential for a downward breakout, given the pattern's origin from a downward movement. Regardless of the direction in which the breakout occurs, the strategy for trading hinges on the re-test of the breakout level. Should the downward break manifest, attention turns to a significant support line at approximately $2.25, which has marked the metal's broader upward trajectory.

Chart 3: Gold

Gold, a perennial favorite in the investment world, is displaying an intriguing MACRO bullish cup and handle pattern. However, the question arises: where does the current price position itself within this larger pattern? Recent activity shows a breakthrough beyond a local downward sloping resistance line, followed by two subsequent tests of this line, now repurposed as new-found support.

The yellow metal's latest behavior involves a bounce from the second re-test of this line, hinting at the potential for an upward journey toward the MACRO resistance at $2,080. The broader pattern suggests a bullish sentiment, although market dynamics can always introduce unexpected twists.

Chart 4: Silver

Silver, akin to its precious counterpart gold, presents a captivating chart story. The metal is ensnared within a macro downward sloping resistance line and a macro upward sloping support line, creating yet another triangular pattern. Within this structure, a noteworthy support line has emerged just above the $22 mark, transforming from resistance to support.

In the present moment, silver finds itself testing both support lines concurrently, yielding a substantial bounce in response. Envisioning the path ahead, there's a potential journey towards resistance at approximately $25.50. This showcases the intricate interplay of support, resistance, and market sentiment.

In conclusion, these charts provide a glimpse into the ever-evolving landscape of financial markets. Investors and traders can harness these insights to navigate potential opportunities and risks. However, it's crucial to remember that market dynamics are subject to change, and prudent decision-making requires a blend of technical analysis, fundamental understanding, and risk management strategies.

By

Contributing to kitco.com