In today’s first alert we wrote the following regarding the USD Index:
Today, the rising support line is at about 94.25 and today’s low (so far) for the USD Index has been 94.32. The line was almost reached and thus we could see another upswing shortly. We could also see another move lower, but it’s likely to be very small.
The USD Index moved to 94.27 today - it’s close enough the above-mentioned level to view the support line as being reached. Consequently, the short-term outlook has just improved significantly.
In light of the above, gold, silver and mining stocks… failed to rally once again and further confirmed the bearish outlook.
Earlier today, we wrote the following regarding the mining stocks:
(…) yesterday’s session provided us with yet another confirmation of the bearish outlook for the short- and medium term, but the very-short-term outlook (for today and perhaps tomorrow) became somewhat bullish based on the reversal seen in mining stocks. It’s likely that the move higher based on it (if it materializes at all) will be small. If it is accompanied by very low volume, it would serve as a final bearish confirmation and we might further increase the size of our short positions based on it.
We don’t know the final volume of today’s session (it’s small so far, though), but we do see that yesterday’s reversal was followed by a sharp intra-day rally at the beginning of the session, which was followed by a subsequent decline. Consequently, the rally that was supposed to happen in the very short term based on yesterday’s reversal, is likely already behind us.
Since the outlook deteriorated based on the above, we think it is now justified (from the risk to reward point of view) to further increase the size of the speculative short position (to 150% of the regular position).
The stop-loss details and initial target prices remain unchanged.
As always, we will keep you – our subscribers – updated.
Thank you.
Sincerely,
Przemyslaw Radomski, CFA
Founder, Editor-in-chief, Gold & Silver Fund Manager
Gold & Silver Trading Alerts
Forex Trading Alerts
Oil Investment Updates
Oil Trading Alerts
