This impulsive breakdown below the uptrend line & 1783 support on /GC (gold futures) following the recent divergent high sure appears legit could prove to be the real deal although I suspect it may prove to be a fake-down vs. a breakdown (i.e.- whipsaw, bear trap, false breakdown, etc…). 120-minute chart below.
GC 120m Oct 29th
Likewise, /SI (silver futures) is cracking below the trendline & 24ish support level although this could prove to be a false breakdown should the Euro rally off the support level it is currently testing. Should the breakdown stick, a drop to the 23 support would offer an objective long entry. 120-minute chart below.
/SI 120m Oct 29th
/E7 (Euro futures) has pulled back to the 1.1629 support following yesterday’s rally into the 1.1688 target/resistance level, thereby providing an objective long entry here with a stop somewhat below the 1.16ish support.
E7 60m Oct 29th
As gold & silver have a strong positive correlation with the Euro, it was this (expected) reaction off yesterday’s initial tag of the 1.1688 target/resistance in the Euro that caused today’s pullbacks (and breakdowns) in gold & silver. Should the Euro hold & rally off the 1.2629 support (or the 1.16ish support just below), that should be bullish for the precious metals.
HOWEVER, and I cannot stress this enough: A breakdown is a breakdown until & unless undone (via a solid move back above the breakdown levels). As such, best not to take/add to a large position in the metals or miners until it begins to become clear that the Euro has held & is rallying off support and the metals have foiled the breakdowns.