In a strong move to the upside, precious metals this morning are back to the top of their trading channel of the last several weeks. I keep repeating that extended and narrow channels like this often signal that a market is in search of direction, that it may be on the verge of breaking strongly in one direction or the other.

What we need to question at this point is, will this trading within a narrow channel continue for a while, and if not, which direction will it turn? I feel quite stongly that it will turn strongly and sharply higher, when is the larger question.

BTW, POG is around 1214 at the moment, and silver is about 17 dollars.