Takeaway

The presenter anticipates that an early-week, shallow pullback across precious metals and mining equities will establish a reversal base, driving prices higher into the end of the week. While crude oil’s recent pop is putting pressure on broader equity and metals complexes, the presenter views this weakness as a setup for long positioning.

What the presenter said

• [00:14] The start of the week is viewed as the period that sets up market reversals.
• [00:18] Crude oil has the potential to hold up, but [00:21] the move is currently spooking both equities and metals.
• [00:26] The desk is waiting for a final pullback in metals, expecting prices to finish higher by the end of the week.
• [00:34] Pullbacks are being tracked in gold, silver, and related equities, [00:43] with specific focus on Hecla Mining (HL) and Pan American Silver (PAAS).
• [00:52] Metals and equities are dipping into shallow support areas early in the week, [00:59] which the presenter expects to yield follow-through on setups established last week.
• [01:03] Today is viewed as the key window to confirm whether the reversal setup triggers.
• [01:09] The presenter notes that if the trade begins to run, positions should not be sold cheaply as the market may end up chasing.
• [01:17] Price action in crude oil is serving as the primary catalyst to watch [01:22] to see if these setups hold up across the week.

Trade ideas

• Instrument: Gold and Silver equities (Hecla Mining / HL, Pan American Silver / PAAS)
  • Direction: Long
  • Entry: Shallow pullback into target areas early this week
  • Target: Higher by the end of the week
  • Stop: None stated
  • Horizon: Short-term
  • Conviction: High