In a pod-cast on November 23, Equity Management Academy CEO Patrick MontesDeOca called a bottom in the gold and silver markets, recommending buying for the long term.
In a November 18 Academy report, MontesDeOca discussed how gold had closed at $1211, below the 9-day moving average of $1275 for short-term day trading.
“The gold futures contract closed at 1211. The market closing below the 9 SMA 1275 is confirmation that the weekly trend momentum is bearish. A close above the 9 SMA would negate the weekly bearish short-term trend to neutral.”
“This indicates that the trend, the momentum is bearish,” he said, “although it also prepares us for the other side of the coin. If the market closes above $1275, that it would negate this bearish sentiment and turn the trend momentum neutral.”
If silver closes below $16.94, it would be a bearish sign. If it closes above $1694, it would negate this bearishness. MontesDeOca recommended “Taking profits on bearish positions at the $16.30 to $15.89 level, using $1589 as your stop.”
“Look to take profits on shorts into corrections at the Buy 1 and 2 levels of 16.30 – 15.89, and go long on a weekly reversal stop. If long, use the 15.89 level as a Stop Close Only and Good Till Cancelled order.”
With silver trading at $1624 and a low of $1617, MontesDeOca said, “We are stabbing right into the demand level on the weekly basis of $1630 to $1589. We have what I call a perfect convergence on the harmonics on the daily, weekly and monthly signals.” It is, he said, “A perfect alignment and the completion of this alignment took place today in gold and silver.” They have aligned themselves to these levels, “indicating a very high probability that we’ll see demand develop from these levels and prices will revert back to the mean of $1694 for silver.” He said, “Closing above $1694 validates and completes
