The patterns in Gold and Silver remain constant with continued weakness. Our expectations that Gold and Silver would rally into resistance has failed. We were looking for a run in Gold to 1750 April Futures and Silver 26.50 May futures. Neither has occurred. Gold looks like it will fail from the 1730 level and Silver from the 26.20 level.
We all know that the pattern can change and the metals could change from a down to an uptrend. Until the pattern changes, we will assume continued weakness and a test of the recent lows and lower. Gold and Silver look very weak, although a potential change can occur at any time, we are sellers.
The key to successful trading is always the same, markets trend until they do not. Reversal patterns can occur at any time, it takes discipline, patience, and the ability to follow the path of least resistance. Too many continue to let the news, or their opinions, get in the way of logic and opportunity.
Trading is about the ability to trade both sides of the market simply following the trend of that market. The major benefit of trend trading is the ability to take emotion and opinion out of the equation giving the trader opportunity on both sides of the market. The metals markets are filled with many emotions and opinions which often cause the trader to make mistakes instead of benefiting from movement.