Ray of Quebec City, has been one of the best long term technical analysts that we have used for over thirty years. He personally does his own long term charts and gives targets. He has been quite good. Here he goes…..

In my view, the targets (min. and max.) have been reached on Precious Metals, Slightly above target. But that’s understandable, since world events are so bad. The pattern start to show signs of entering a distribution phase, in gold as well as silver. That corresponds  with the overbought levels.

 We are due for a correction that shouldn’t be too long nor too severe -20 to 30 % and 2 or 3 months. These are coming from experience, not from a crystal ball. In fact we don’t really know but it makes sense.  

The larger patterns on most mid tier stocks remain tremendously bullish, even with substantial corrections ahead. Most stocks are engaged into 10 to 20 year double bottoms. Of course, that means nothing to accountants who try to advise us. 

One great example is the HUI Index that you can find in Yahoo’s chart system. This Index is at 363. A correction in the 300 range is only down 20%, but then away we go for the 600+ figure. When an index can do that, imagine what some of its best components can do. Good luck. Ray