GOLD AND SILVER TRADE ALERT (2:45 pm EST)
Gold and silver prices seem to be pausing and rounding over a bit today, and since they have reached our upper targets for a short-term trade I am going to take profits here and sell my long positions in both metals today.
I mentioned the possiblility of selling these positions last Thursday because technical signals were indicating the possibility of a very short-term steep drop (correction) in both metals and this risk is still present. There are two possibilities for this market at the moment: a sharp drop into the end of this week/early next week or a continued rise into the week's end and then a sharp drop. As I mentioned in Thursday's blog, the end of August is a strong reversal zone for all markets so prices will likely make a major change in direction then. The potential correction here could go as low as the $1300 area in gold and the $20 area in silver, so I feel it is worth stepping aside now. I want to emphasize that this would most likely be a short-term correction. If prices do fall to these levels (and find support) it will be an excellent buying opportunity and we will want to go long again.
Gold and silver prices seem to be pausing and rounding over a bit today, and since they have reached our upper targets for a short-term trade I am going to take profits here and sell my long positions in both metals today.
I mentioned the possiblility of selling these positions last Thursday because technical signals were indicating the possibility of a very short-term steep drop (correction) in both metals and this risk is still present. There are two possibilities for this market at the moment: a sharp drop into the end of this week/early next week or a continued rise into the week's end and then a sharp drop. As I mentioned in Thursday's blog, the end of August is a strong reversal zone for all markets so prices will likely make a major change in direction then. The potential correction here could go as low as the $1300 area in gold and the $20 area in silver, so I feel it is worth stepping aside now. I want to emphasize that this would most likely be a short-term correction. If prices do fall to these levels (and find support) it will be an excellent buying opportunity and we will want to go long again.
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