Things that might matter for precious metals and commodities as market sentiment gets shaken up.

The precious metals aren’t exactly playing along. I read a report from The Short Side of Long this week that was full of reasons why precious metals may breakout higher soon. And this forecast seems a bit independent of what risk appetite does.

As to the report, I’d already been watching the technical evidence presented, i.e. the moving averages offering support and resistance, the narrowing wedge patterns, Fibonacci retracement levels, three-wave moves, etc. But there were some items in the report I hadn’t considered.

Again, a lot of these indicators can persist for a while before any expected turn in price. But the fact that so many items are coming together at nearly the same time to signal an intermediate-term sentiment extreme, a technical breakout in price could be the catalyst needed to spark some substantial buying ...

Commodities Essential. 8 February 2013

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