Current Market Views Via Technical Analysis

November 20, 2016

Stocks present nothing special, even though indexes are acting nicely for now.

Shipping stocks continued their wild upside action until they didn’t. Consequently, I ended up with some losses, since I didn't handle the trade properly. The odd time I play things wrong…it’s no fun at all.

I was hoping to have some large gains to talk about, since I’m starting up my real-time trading group again. However, in reality it’s not all wins in this game. We continue to see stocks setup patterns, but so far, there aren't a lot of actionable trades I’m spotting…perhaps next week.

The metals weren’t anything special at all - and broke lower Friday. Therefore, now we look to support levels where we see what the charts tell us then. Since the election, metals have not been acting great at all, and the weekly and monthly charts still look fine…but it doesn’t feel that way right now looking at the daily charts. We remain in a long-term uptrend in gold. Moreover, I doubt these election results will change that, but you just never know.

Gold close down 1.27% this past week and is looking set for more downside. Support now, once again, sits at $1,180 and we should get there very quickly, likely Sunday evening in overseas trading action. This is usually a strong time of year for the metals.

Silver fell 4.36%. We’ve got strong support at the $16.30 level and then below at $15.90 or so. Let’s just let the action play out and allow the charts tell us what to do. Presently, they are looking for a low.

Platinum slid 2.25% and is also now breaking below support at $930. Now I’m watching to see how platinum reacts at the $885 level and maybe even looking down to $760 where major support is located.

In a few months we may just look back at the developing weakness as great buy levels. However, I’m not seeing signs of a low in the metals yet.

Palladium continues to confound, and rose a solid 6.29% this past week. Super action from palladium to be sure, doubly so in the face of weakness in the other metals. Nonetheless, we are now at resistance so consolidation is due.

This $725 level has acted as resistance before and should again now. I’m looking for some consolidation now after the improbable run palladium materialized. Subsequently, metals are weak while stocks in general seem to be setting up for a run into the end of the year. However, they aren’t presenting me with many buy levels quite yet.

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Warren Bevan is a renowned trader who’s honed his craft over the years learning the styles and techniques of Jesse Livermore, William O’Neil and Dan Zanger and forming his own unique style. He focuses on making money and going hard when the right markets present themselves and during the rest of the time focuses on capital preservation.  He focuses on the leading fast moving stocks during the good times.  He is a proud Canadian, traveler, explorer, and consummate market geek who tells it as he sees it. Warren’s website is www.wizzentrading.com and his email address is warren@wizzentrading.com

The 1849 Gold Rush sped up California's admission to the Union as the 31st state in that year.