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The portion below has four important gold, silver, copper, and palladium charts and is just a very small portion of what Yamada covered in her fantastic 50 page piece.  A link to subscribe is located at the bottom of the piece.

By Louise Yamada Technical Research Advisors, LLC ("LYA")

May 7 (King World News) - Key Gold, Silver, Copper & Palladium Charts


Gold: Neutral

Gold Spot price (GOLDS-1.299.62, see Figure 23) is following the technical adage “the bigger the drop, the longer the need for repair.” Gold has now spent one year in a range between 1,400 resistance and 1,200 support, direction unknown. This is a normal part of the process of repair, if price is to move higher at a later date. A neutral pattern can also precede another decline in an ongoing downtrend. Monthly momentum is still negative but flattening, and weekly momentum is positive but flattening. Neutral remains the trend until one of the above parameters is breached.

The brief attempt to penetrate the 2012 downtrend (dashed line) was aborted and price is interestingly back below and so far, rallies are struggling there.

It pays to step back and look again at the longer-term relationship of the S&P 500 (SPX) versus Gold (see Figure 24), a ratio that has shown the outperformance of Gold (falling ratio line) from 2000 to 2011 during which equities were experiencing a bear market into 2009, and the rising ratio now, which depicts the SPX outperforming Gold.

The five-year base and breakout suggest that a new structural advance in equities versus Gold is now in place, and that any interruptions, as may now be noted, is nothing more than a short-term interruption to the new structural outperformance trend for equities. Thus one might make a deduction that Gold could either remain flat, decline further, or go up less than equities.

Silver: Fragile

Silver Spot price (SILV-19.50) has not fared quite as well as Gold and again is tickling support near 19 and holding below both MAs as depicted herein last month. Risk remains at 18 and only a lift through the 200-day MA at 21.10 and the downtrend line at 21.60 would suggest potential for a rally.

Copper – Kickback Rally?

The Copper Continuous Futures Contract (HG1- 308.15) slipped to 287.70 (see Figure 25) breaching the three-year support before kicking back toward the 200-day MA, which again suggests a lower rally peak in the downtrend since 2011. The weekly momentum remained negative on the rally as did the monthly (as depicted herein last week). The technical forces still suggest potential for further risk and any slip below 287 retains our risk level to 250.

Best-case scenario would be neutral unless the shorter-term downtrend at 330 could be surpassed, and then for another assault on the longer-term downtrend near 350. There is a lot of daily noise and wiggle room between here and there.

Platinum: Neutral

Platinum spot price (PLAT- 1438.25) depicted herein last month, has moved little, retaining a sideways pattern above support at 1,400-1,325. The three-year downtrend remains in place and weekly and monthly momentum are barely positive and barely negative respectively … effectively neutral. Price still would need to exceed 1,500 to reverse the more negative bias of the downtrends.

Palladium: Breakout.

Palladium spot price (PALL-811.65) is the only metal to definitively break out of a two-year consolidation through 800 (see Figure 26) with a confirmation in the monthly momentum just turning up to positive. Price may now address the 2011 high near 860 and could even progress beyond over time. Support now lies at 785 and 750, the uptrend from 2009.

The above information is just a small portion of her incredible 50 page report.  As Managing Director and Head of Technical Research for Smith Barney, Louise was a perennial leader in the Institutional Investor poll, and was the top-ranked market technician in 2001, 2002, 2003 and 2004, before going independent.  To subscribe to Louise Yamada Technical Research Advisors, LLC ("LYA") CLICK HERE.

© 2014 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.  However, linking directly to the blog page is permitted and encouraged.

IMPORTANT - KWN will be releasing at least two more interviews today.

The audio interviews with Rick Rule, Dr. Paul Craig Roberts, Gerald Celente, Felix Zulauf, Michael Pento, James Turk, Victor Sperandeo, Dr. Philipa Malmgren, Grant Williams, Dr. Marc Faber, Egon von Greyerz and Art Cashin are available now. Other recent KWN interviews include Eric Sprott and Jim Grant -- to listen CLICK HERE.

Eric King

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