Metals continue to trade in different directions with different patterns. Gold and Silver continue to struggle on what to do next. Gold is in a downtrend, just one week ago there was a panic sell below 1800 April futures. Gold spent the next 5 days moving higher only to fail at the 1860 level. Based on the trend, our position, and the algorithm, we remain short Gold.
Silver is like the parallel universe of Gold right now, came down to major support while maintaining an uptrend. The next major target is 28.00 March futures. The pattern is much cleaner than Gold and the trend is much clearer. Gold has been making lower highs and lower lows while Silver has done the reverse.
While Gold and Silver defend their positions, Platinum has exploded trying to chase down the major level of 1300. 1400 April Platinum is a real possibility of reaching that level sooner than we think. Platinum is a little thinner and lacks the liquidity of Gold leaving room for sharp moves.
Our positions remain the same, Short Gold, Long Silver and Platinum. How long these current trends will last are anyone’s guess. Trading the trend is about following the path of least resistance.