Just a quick note to let you know that today’s upswing in gold and the rest of the precious metals sector doesn’t really change anything that we wrote in today’s regular Gold & Silver Trading Alert. In fact, we already wrote about the possible test of the $1,400 today, but when things get volatile, it’s natural to wonder if something has changed. Quoting today’s Alert:
“It’s true that the most important thing was last week’s immediate invalidation of the breakout above the intraday mid-2013 high, and that yesterday’s close below $1,400 already served as a confirmation of the turnaround (along with multiple indications that we saw beforehand, such as extremely big volume and triangle-vertex-based reversals). However, many people ignore the bigger picture and focus on the most recent changes. This is even true for people posting their analyses publicly, which is the likely reason why people got overly excited after gold moved above the 2018 highs while silver didn’t even move close to its 2019 highs.
The above means that even though the most important signs are already behind us, most people may not realize that. What they do realize is that gold moved to the short-term support line and it didn’t decline below it. These people may buy some more and trigger another - smaller - upswing that attempts to take gold back above $1,400 on a closing basis. But it’s not likely that they will manage to do anything more than that - after all, the true turnaround has already taken place as confirmed by the many signs.”
We already saw the weekly reversal and today’s move higher is likely a temporary rebound that doesn’t change the likelihood of seeing much lower gold, silver, and mining stock values in the upcoming weeks. This week is likely to end well below the current levels as well.
As always, we’ll keep you - our subscribers - informed.
Thank you.
Sincerely,
Przemyslaw Radomski, CFA
Editor-in-chief, Gold & Silver Fund Manager