Bullish commodity traders haven’t exactly had an easy task finding profitable trading candidates over the past couple years given relatively weak fundamentals and accompanying downtrends. However, with the rise in global volatility and increasing uncertainty about the future, the metals segment has finally started to trade higher. In this article, we take a look at the bullish chart patterns on metals-related exchange-traded products that are giving active traders a reason to pay attention, and we consider how they are offering some of the best risk/reward scenarios in recent memory. (For further reading, check out: Traders Turn to Precious Metals Among Volatility.)
ETFS Physcial Precious Metals Basket Shares
When global volatility rises, one of the commodity sectors that is first to respond is precious metals. The safe-haven-like qualities offered by this group are timeless and continue to act as a strong hedge to underlying uncertainty. For many, the ETFS Physical Precious Metals Basket Shares offers one of the best ways to gain exposure to this segment since the fund is designed to reflect the performance of the price of a basket of gold, silver, platinum and palladium bullion.
Taking a look at the three-year weekly chart below, you can see that the price was recently able to surpass the resistance of the 200-week moving average. This long-term crossover was an early indication that the downtrend is reversing and that the bulls are taking control of the momentum. Active traders will look at the consolidating trends as a positive sign that the newfound support is holding, and many traders will likely set their stop-loss orders below the ascending trendline, the 50-week moving average or the 200-week moving average. (For more, see: 3 Positive Chart Patterns for Precious Metals.)
Bullish chart patterns suggest that metals-related assets will be worth watching over the coming weeks and months. …read more
Read more here: 3 Charts That Suggest Metals Are Headed Higher
Category: GLTR, GLD, JJM