Gold has rebounded strongly after April’s massive sell-off, but Gary Tanashian of BiiWii.com doesn’t think that the precious metals complex is out of the woods yet.
Here are some possible bear flags in the making, compliments of the precious metals sector. These are weekly charts and the flags may not yet be mature. Indeed, we have been managing a would-be rally by the miners off of the capitulation low of a couple weeks ago, and that is still in progress.
HUI, GLD & SLV daily
Click to Enlarge
But the weekly view is not a good one, technically, for the precious metals complex. Maybe what we need is for the “community” leaders to get emboldened just a little more.
People who understand the value of their physical metal are sleeping soundly. Unfortunately, the majority of players are just casino patrons dressed up as value players and they are micromanaging every tick in gold. Do you think it is just going to breeze through 1524 with all that hope and angst built in?
The gold generals (with egos as big as their reputations) may be debunked by the time this is all over. All along they have used dogma to keep the troops in line and other smart guys have used charts to call bottoms that really weren’t… ‘see, I have a chart to back up my biased viewpoint!’; but the problem is real people with real lives, loves, problems and joys read this stuff and think ‘expert.’
Nobody knows what is happening out there for certain. If the bear flags above turn out to be wrong, I’ll admit as much. That is because a chart cannot predict. It can only hint and prompt risk management or speculation. It is all about hard work and discipline.
Sorry for the negative attitude, but this whole process has disgusted me more and more the longer it has gone on. I read things every day by dangerous people that make me want to puke. Gold is monetary value, not an idol of worship. Keep religion out of it. Keep fear out of it. Keep greed out of it, and you’ll be fine.
By Gary Tanashian of BiiWii.com
