We haven’t finished today’s Gold & Silver Trading Alert so far, but given the early decline in the precious metals, it seems that a quick message before posting the regular Alert is a good idea.
Based on yesterday’s session (details will follow in a few hours) we wanted to close the long position in gold, silver and mining stocks, but based on today’s pre-market decline in both precious metals, we think that opening a regular short position is currently justified from the risk to reward point of view.
It’s not the decline by itself that makes the short-term outlook so bearish, but the strength of reaction to rather small (0.34) upswing in the USD Index in light of what we saw yesterday. As mentioned above, the details will follow shortly.
Time is a factor, so we are providing the initial target prices and stop-loss levels only for the key assets. We will update you on all assets that we usually discuss and in today’s full Alert (in a few hours). We may also update the price levels for gold, silver, and GDX.
As always, we will keep you – our subscribers – informed.
To summarize:
Trading capital (supplementary part of the portfolio; our opinion): Full short positions (100% of the full position) in gold, silver and mining stocks are justified from the risk/reward perspective with the following stop-loss orders and initial target price levels:
- Gold: initial target price: $1,202; stop-loss: $1,272
- Silver: initial target price: $14.42; stop-loss: $16.46
- Mining stocks (price levels for the GDX ETF): initial target price: $19.12; stop-loss: $23.64
There are no changes in the investment or insurance categories of the portfolio.
Thank you.
Sincerely,
Przemyslaw Radomski, CFA
Founder, Editor-in-chief, Gold & Silver Fund Manager
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