Petaquilla Minerals Ltd PTQMF

Metals

[Libertyg]

FWIW, i believe silver and gold are about to break down. Silver at least to 31.00 dollars, but more likely an overshoot to the 29.50, or worst case maybe 26.50. I would view the 29.50 area depending on how it gets there as a potential long position, but better to let it play out if it gets there and make sure it holds first. Gold as mentioned earlier is trying to hold the 1477/80 area. It bounced but feebly. It looks destined for a minimum to 1440 area. Worst case around 1372/1400.00 area. I do believe this will happen real soon, as in a day or two. If we get a bounce then best to sit back and let it play out. If i wasn't short already i would look to short silver in the 34.00/34.20 range for a .50 cent risk. If silver were to achieve higher than 34.70 i would get out quickly just in case. You must have an exit strategy and stick to it with silver as it can crush you real quick. It's highly volatile and dangerous to trade.

Silver especially if it manages the 29.50/31.00 area i will be looking very seriously at going long depending on how it get's there.

Why? The dollar as feeble as it is has been drifting lower and the metals have gone down. The dollar looks primed to bounce again at least to 75.50/76.00, any higher than around 76.50 and commodities could suffer the bulk of this summer. Breaking above 76.50 could allow a significant rally in the dollar back to 80/82. I don't see it, but you have to be alert for anything right now.  The US market is rallying. I do believe Oil will get to at least the 85.00 area. Money is going into equities and may start flowing out of commodities as the mo mo buyers chase the markets and unload commodities in the short term. Once the US market has peaked out on this rally the tide should reverse.

The set up for now appears to be allowing for this correction to exhaust itself, the next lows should do it for a long long time.

The behavior in the metals is setting up for an impressive rally along with general commodities like oil etc. Uranium also has been beaten down harshly and will offer an excellent buy in as world energy short falls will over ride safety concerns in the end.

The junior sector is also appearing to be nearing an end on the downside. Could be done already or exhaust through summer and again offering an excellent buy we wont see again for quite some time.

This is all short term, meaning weeks or at most a couple months. For those who get angry when posting against your wishes you have to remember to trade the market we have not the one we want. Our day is coming but reality is we may have to be patient and don't ignore what's happening because you don't want it to happen. Just prepare for the opportunity and don't get emotionally slanted.