On Thursday we mentioned that although we remained short, we were going to hold off on selling more. With Gold looking a little better, we wanted to be more cautious. This morning Gold is under pressure confirming the failure and a greater chance of the continued downtrend.
Silver also failed its first test and should head lower. Based on the price action all indications are for the down trend to continue. 25.00 May Silver futures remains the key level of support. We are no longer aggressive sellers but will hold our short position until the trend changes.
What we are seeing in Gold, Silver and Platinum is downtrends suggesting a continuation lower. A reminder that we do track Platinum and I buy physical though we no longer carry in our portfolios because there is a lack of liquidity.
From our perspective as traders all charts are the same and markets will all trade the same patterns over and over again. Remember here we are talking trading and I always disclose my positions on both trading and investing. For now we remain short Gold and Silver and will stay there until there is reason to buy.