/GC (gold futures), /SI (silver futures) and /ZB (30-year Treasury Bond futures) have all hit (or slightly overshot) the recently highlighted price targets/support levels with the positive (bullish) divergences still intact as of now on all of these risk-off assets. While it is very possible & in fact, quite likely, that gold, silver and/or T-bond futures will break these supports & continue lower if the equity futures rally substantially from here, I favor a reversal off or slightly below these levels.

As such, /GC, /SI and/or /ZB offer objective long entries here with stops somewhat below to allow for potential false breakdowns/bear-traps as well as an objective level to either cover shorts or lower stops on short positions in these risk-off assets. Should the PM’s and/or Treasuries reverse soon, the next objective long entry (or stop for those still short) will come on impulsive breakouts above those 60-minute bullish falling wedge patterns (i.e.- the downtrend lines). Likewise, should these risk-off assets rally substantially from here, that would most likely coincide with a reversal & drop in the equity futures.

Just to be clear, should these support levels fail to hold, the precious metals and/or Treasuries could fall impulsively to the next support level(s) as they are all still only just recently coming off extremely overbought conditions with bearish technicals & sell signals on both the 60-minute & daily time frames recently so don’t underestimate how far or fast the PMs & T-Bonds can fall should there be a crowded rush for the exits on the risk-off trade. As always, stops are not an option.

1+