The metals continue to go in separate directions, Platinum and Silver higher, Gold breaking down. One might think this is an uncommon occurrence however it’s not. Asset classes often go in opposite directions different periods of time.
Look at our algorithm, it has identified and uptrend in Silver and Platinum with a downtrend in Gold. The key level we have been watching in Gold was 1800 support which has now been broken. The price action suggests that Gold could see 1750-1700 April futures.
Although Gold is in a solid downtrend and should take out the lower levels, we expect a rally with the intention of adding to our short position. New resistance for Gold is 1800 – 1820 which are the levels we are looking to sell.
Platinum continues to breakout to the upside and is now on 7-year highs. Silver looks like a mirror image of Gold if you turned the chart upside down. The most important thing to remember when mechanically trend trading, markets will follow the trend until they don’t, no one knows when a trend will change. We are trying to take the meat out of all moves.