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GLD GDX SLV SIL Update

After holding the 17.90 gap support for 2 days, SLV gapped & stayed below that key support level all day yesterday. While I favor a continued move towards the 17.10 level in the coming days/weeks, the odds for a snapback rally & possible backtest of the 17.90 area is elevated at this time.

SLV daily Aug 24th close

SLV daily Aug 24th close

SIL closed right around the first support/target level while SLV & GLD both closed somewhat above their next support levels. While I still favor more downside in the coming weeks, the odds for a snapback rally are starting to rise at this point.

SIL daily Aug 24th close

SIL daily Aug 24th close

The next key support on GLD comes in around the 125 area, where a reaction is likely before a continued move down towards the 121 area.

GLD daily Aug 24th close

GLD daily Aug 24th close

GDX smashed through the first support level yesterday & close a bit shy of the next support zone.

GDX daily Aug 24th close

GDX daily Aug 24th close

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Aug 25, 2016 9:35am|Categories: Gold & Commodities|Tags: , , , , |1 Comment

One Comment

  1. rsotc August 25, 2016 9:46 am at 9:46 am

    I had intended to add some comments at the bottom of this update on the metals & miners. While the odds for a snap-back rally begin to rise sharply as gold & silver near these next support levels, there are a couple of take-aways from that, assuming that we even do get a snap-back rally soon.

    To begin with, the R/R to establishing new short position in the miners, especially if you don’t already have some positions that you are adding to with healthy embedded gains from the recent sharp drop, begins to erode at this point & continues to diminish with each tick lower. The other take-away is that one must define & stick with their trading plan. If you shorted any of the metals and/or miners, were you only looking for a quick trade, planning to cover on as the first targets that were covered in the recent Previous Metals & Miners video were hit or were you planning to position or scale in for what could be a much deeper, multi-week or multi-month correction?

    Assuming that your plan is the latter, are you an active trader that plans to micro-manage those positions by covering or reducing short exposure when a snap-back rally appears likely with the intent of re-positioning short on the bounce or do you plan to ride out any snap-back rallies in order to avoid booking profits too early without an objective re-shorting opp, should the miners continue to drop sharply?

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