In this reply to @Dkpdkp requesting an update on the precious metals yesterday (click to view charts), I highlighted the simply yet effective pattern of actively swing trading the divergent highs & lows on gold & silver (with many of those short-term trends shares as profitable trade ideas in recent months).
While both silver & gold solidly remain in their current near-term uptrends without any sell signals, they appear to be setting up as swing shorts for the next tradable pullback. GLD (gold ETF) will trigger an objective short entry on a break below this 60m bearish rising wedge pattern, ideally with the negative divergences still intact at the time on this 60-minute chart.
GLD 60m Sept 25th
For futures traders or GLD (or silver) traders that want to help minimize the odds of entering a short on a whipsaw (false breakdown), /GC (gold futures) will trigger an objective short entry on a solid break and/or 120-minute close below this bearish rising wedge pattern on the 120-minute chart below.
GC 120m Spet 25th
SLV (silver ETF) will trigger an objective short entry on a breakdown of the 60m rising wedge on GLD with another objective short entry or add-on to come on a break below this 60m uptrend line.
SLV 60m Sept 25th
For futures traders, /SI will offer an objective short entry on breakdowns below the 60/120m rising wedge on GLD & /GC as well as below this uptrend line on the 60-minute chart below.
SI 60m Sept 25th
Personally, I have enough confidence that a reversal in gold & silver is imminent to have just taken a starter short position in /SI with plans to add to the position if/when the aforementioned sell signals are triggered. As far as when & why that might occur, the purple line (GLD) on this 60-minute chart below shows the extremely tight positive correlation between gold & EUR/USD. EUR/USD has been rallying since the Fed rate cut odds (and actual) have been increasing in recent months, bringing gold up with it. Based on the current technical posture, an imminent trend reversal in EUR/USD (and gold) seems likely with any or all of tomorrow’s GDP, Jobless Claims, & Powell speech a likely catalyst to trigger the reversal.
EUR-USD 60m Sept 25th