Wednesday, March 9, 2011

03.09.2011

The Collectors Coach with Jack DeAngelis


I will be on Jack's radio show tonight as a guest on the silver round table. The show starts at 8pm EST/5pm PST and the round table will be from 9:30pm EST to 11pm EST. Go to Jack's webpage if you are interested in listening to the show.


Market continues to correct through time




Not much to report on an intra day level. The market was choppy and traded sideways. This chart most likely will change for next week as I want to do with many things on this blog.




On the candle chart we are seeing a pattern that has been very consistent lately. This is we are finding sideways action and less volatile through time after a nice run higher. There has now been two days of sideways consolidation. The bias is still to the up side on a technical aspect as we are above a rising 50 and 200 day moving average. The line chart added on there shows a higher band within' the uptrend channel. We will see if this area can have any resistance level. The two purple lines on this chart is 38.2% and 61.8% exponential fibonacci. The current 38.2% level or next one lower is currently set at $20.96 and at a crucial level. If fibonacci plays out like it does on many occasions where this level happens to meet up at keys levels then this means that the market will have a significant correction of either over 15% down or a month or so of sideways action as one possibility. The other one is we keep going much higher so this line can match up with another key area. The next key area on this chart is not until $26 or $27 and if we rally further than that means a target of not only past $50, but to around $75 per ounce.




This chart is for short term traders and spans a much shorter time frame. On the candle chart, what I have noticed is that we are making a pattern of lower lows and higher highs. This happens during an indecision period and often after a big up or down move. This case was following a nice up move that we had earlier this week to $36.75. The market corrected down to a shade over $35.50 and since then we have not broke either level. After this a high of around $36.50 was made and a low over $35.60. Since this point neither level has been taken out. We then made a high of under $36.50 (again lower than its previous) and a high a hair above the last one mentined. When this is the case, I like to state "Somethings got to give, and the breakout/down can often be fast moves as the indecision states come to an end."

Thank you for visiting the page today :)

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