My precious metals update for the week of December 5, 2005

Tuesday, December 6, 2005
By Benjamin Train

The major trend could be turning up with a close back above the 18-day moving average this week. The metals market looks a bit overbought. I think it may form lateral movement this week, with an upturn toward the end of the week.

The daily, 9-day and 18-day moving gold stochastics have risen into the over-bought territory. The longer-term weekly trend turned up last Friday. The near-term upside POG is at 516.8. Resistance is at $515-$516. Support rests at $507, but if that fails look for $504.

If the $8.60 silver support fails to hold, a slide to $8.54 support is possible. The silver market looks to follow gold and the softening platinum market. The next upside target is $8.82. The next area of resistance is near $8.79 - 8.82. The first support hits today at $8.68. Below that is $8.60