The Trading Range in Metals Keeps Getting Tighter!

The precious metals keep trading in an ever tighter range. Big moves come from tight ranges.

The key is to figure out which way the market will break the range either up or down.

The roller coaster ride is slowing down as gold trades within a tighter range. The range is now between the HIGH of $2024.60 per ounce posted on August 18th and the LOW of $1908.40 per ounce posted on August 26th.

The range in silver is way tighter than the range in gold. The range now is between the HIGH of $28.61 per ounce posted on August 18th and the LOW of $26.09 per ounce posted on August 21st.

OK I tried to do something "new" on the charts. I drew lines to illustrate just how tight the range in silver has gotten.

What do you think? Can you see the tightening of the range?

Two positive things happened in the MINERS today. The first is that GDX closed above the 18 day moving average. The second is that the stochastic is also pointing up. With that being said, GDX is still trading within a range.

GDX is bounded by the HIGH of $44.08 posted on August 18th and the LOW of $39.60 posted on August 25th.

So what does all this mean?

The precious metals are still trading within an ever tightening range. When the range breaks then the party really starts! Caution is warranted until the range is broken to give a clear signal as to the direction of the market.

Enjoy the weekend!

Peace out and stack on!