Revisiting the Working Class Metals

• Posted by Greg Harmon
• on November 9th, 2011

When I last looked at the working class metals Silver, $SI_F, Platinum, $PL_F, and Palladium, $PA_F on October 12 (link below) they looked like a buy coming off of a bottoming process. Turns out that was the right call, but more importantly they are continuing to move higher and are looking even better. All are down more than 1% in the pre-market, maybe giving you a bargain. Let’s take another look.

Silver

Silver has continued to move higher with a Relative Strength Index (RSI) that trends higher and is now approaching 60. The Moving Average Convergence Divergence (MACD) indicator flipped to positive and has started to fade recently as price is consolidating near the 50 day Simple Moving Average (SMA). Through the resistance there the next levels of resistance come at 37 followed by 37.75 and 38.50. At those levels it will be over all of the SMA’s again and the RSI will be well over 60 and more bullish.

Platinum

Platinum has also stair stepped higher and may be ready to break resistance now at 1665 with 1675 as a big level above that. The RSI continues to rise and is a touch from 60 as the MACD has continued to grow and is increasing again after a small pullback, both bullish. The measured move higher would take it to 1740, near the 200 day SMA.

Palladium

Palladium, has already broken resistance from the last stair step higher and is running again. The uptrend continues. With the RSI near 60 and moving higher and the MACD positive and starting to gradually increase again this looks like it has more upside as well. The 700 level will be the next major resistance and through that the target on a Measured Move takes it to 715, near the 100 day SMA. At that level it will have a RSI over 60 and will likely look more bullish.

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Gold = Money, Copper = Growth, Other Metals = Buy?

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