The metals continue to trade in arange and now that range is narrowing, indicating a big move is on the horizon.The only question is which way -- just like Elmer Fudd in the Bugs Bunnycartoons, which way did he go?
Congestion is the toughestpattern to read because the markets continue to make a series of double topsand double bottoms. The congestion phase can easily be named the confusionphase because that's what investor are at that point -- confused.
Based on the outside markets,percentages favor the next move to be lower. The dollar looks like it wants tobreak out to the upside, which would put pressure on the metals. We remainbullish long term but would not be surprised to see a sell-off in the shortterm.
By Todd 'Bubba' HorwitzContributing tokitco.com
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