Another day comes off the calendar and the trends in metals remain the same, Gold down, Silver and Platinum up. Gold has resistance at 1820 which we are willing to sell. The bounce Gold has seen the last few days was very predictable after Friday’s flush to new lows of 1759.
Markets almost always have a dramatic move in either direction regardless of the current trend. Depending how fast and deep that move is, partial retracement is expected. We have now seen a rally from the bottom, our target was 1820 on the rally. In other words, the trend is down and until that changes we are looking for levels to sell.
Silver remains in an uptrend and the action on Monday was very bullish with Silver breaking out of consolidation. The real target for a much bigger move is a breakout over 30.00. Platinum is the strongest of all and is now stuck in consolidation. The odds favor a breakout to the upside.
With Monday’s massive sell off in the Nasdaq, Bonds continuing to collapse. The weakness in Gold is concerning, which suggests the current trend to continue. Bottom line for traders: follow the path of least resistance and be prepared to change when that path changes.