by Clive Maund
GoldSeek
The PM sector did exactly as predicted in the article WHEN THE RUBBER HITS THE ROAD – THE SCORCHING PM SECTOR RALLY AHEAD posted on the site about a week ago with breakouts by metals and stocks last week from Flag / Pennant consolidation patterns into powerful uplegs. The purpose of this update is to appraise you of the fact that THE REALLY BIG ACTION HASN’T EVEN STARTED YET, but it will soon and we will proceed to see exactly why in this update.
Let’s start by reviewing what happened. Our first chart is the 6-month chart for gold and it’s interesting to see that while silver and PM stocks raced ahead last week, gold’s new upleg has barely gotten started and it has yet to break above the resistance at its early April highs – it will though and when it does it is expected to soar towards the upper rail of the uptrend channel shown and that implies further strong gains by silver and PM stocks in the days and weeks ahead.
