Metals: anatomy of a breakdown
So much for the trade to $1865 gold and/or $22.50 silver right now. Stackers, though, are seeing this smash-down of price as a buying opportunity, and rightfully so, in my opinion. Premiums on physical bullion pieces are at their lowest in 3 years.
To be fair – As I wrote when the trade setup occurred last week, "I would have a target at $22 and a stretch at $22.50 spot, perhaps with a stop at today's low?" That stop would have been $20.65: Respecting stops, which is essentially respecting yourself, in my opinion, is a cardinal rule in the traders' handbook. Also, regarding gold, I revised a target from $1855 to $1865 with respect to confirming that the upward trend has concretely resumed.
Now: below is how I saw the breakdown occurring in real-time as it happened yesterday, starting with the smackdown at 2 am EST Monday night from $1850 on news of the Perth Mint having sold"tainted" gold to China.The flashing red flag was the brutal breakdown of the all-important $1832 level I have been writing about for months – Once bulls failed to hold that line, the bear raid accelerated quickly, as shown on the 2-hour chart below.
And finally, a look at silver with an updated chart of that shown twice last week. Note the false breakout and reversal above the top trendline. As traders should know and as I have noted, most recently regarding a similar fractal in stocks: "the opposite move to a false breakout/down could be dramatic." Yesterday it played out quite dramatically, indeed.
I will be watching $20 silver and $1800 gold for signs of further selling ahead, but for now, price would most likely pair some of yesterday's losses first. Perhaps traders get a chance at $20.50/65 silver and $1832ish gold again.Follow J_GidaroDasilva jdasilva@kitco.com www.kitco.com
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
China's central bank puts the world on notice as it buys more gold; analysts at PDAC expect this is only the start of a new trendChina's central bank puts the world on notice as it buys more gold; analysts at PDAC expect this is only the start of a new trend Chinascentralbank gold PDAC
Read more »
S&P/TSX composite edges lower as energy and base metals fall, U.S. stocks up | Globalnews.caS&P/TSX composite edges lower as energy and base metals fall, U.S. stocks up
Read more »
TSX today: Index edges lower as energy and base metals fall - BNN BloombergCanada's main stock index edged lower in afternoon trading, weighed down by losses in the energy and base metal sectors, while U.S. stock markets climbed higher to start the week.
Read more »
Battery metals projects catch eye of pension funds and carmakersCritical minerals projects are attracting newfound interest from pension funds and automakers to help tackle a looming shortage of battery metals, say some of Canada’s top investment bankers. The rush for metals like lithium, copper and nickel needed to power electric vehicles has “clearly brought the sector into a spotlight that it wasn’t in a few years ago,” Ilan Bahar, global mining co-head at BMO Capital Markets, said during a Monday panel discussion at a mining conference in Toronto.
Read more »
PDAC: Wheaton Precious Metals CEO on 'strong period of growth' ahead - BNN BloombergThe president and CEO of Wheaton Precious Metals Corp. is touting 'very exciting times' ahead for his metals streaming company, and he says shareholders stand to benefit in the coming years as the company’s assets are set to grow.
Read more »
Government of Canada approves Alamos Gold's Lynn Lake gold project in ManitobaA roundup of all the mining news in the precious metals sector with a variety of company news, mining sector analysis, newsletter writer insights and executive interviews.
Read more »