GOLD and SILVER TRADE ALERT (7:00 pm EST)
Today gold prices broke and closed just below our stop loss line of $1180, and it looks like the chances of the precious metals moving lower are increasing. Charts for the two gold and silver ETFs GLD and SLV both turned 100% bearish today, and the gold/silver mining company index XAU turned strongly bearish just two weeks ago.
This is strongly suggesting that gold and silver could move lower into Jan. 2. The next support level for gold is at $1160, and after that at $1140. Gold prices may reach those levels over the next week or two so I am going to bail out of my gold and silver long positions now. Silver has not yet broken our stop loss at $15.50 but it came close today, and because silver is more volatile than gold I think it is prudent to cover both metals now. Our entry points were close to our stop loss lines so we can unload these long positions now with a small 1.5% loss. If gold prices do move down and stabilize between (or at) $1140 and/or $1160 by Jan. 2, I will consider going long again. If gold breaks below $1140, it could plunge to the $900 - $1000 area. I don't think that will happen, but a drop to $1160 or $1140 over the next two weeks looks possible and may be a good setup to buy again. Placing trade orders tonight to sell my gold and silver long positions at market opening tomorrow (Dec.23 - Tuesday).
Today gold prices broke and closed just below our stop loss line of $1180, and it looks like the chances of the precious metals moving lower are increasing. Charts for the two gold and silver ETFs GLD and SLV both turned 100% bearish today, and the gold/silver mining company index XAU turned strongly bearish just two weeks ago.
This is strongly suggesting that gold and silver could move lower into Jan. 2. The next support level for gold is at $1160, and after that at $1140. Gold prices may reach those levels over the next week or two so I am going to bail out of my gold and silver long positions now. Silver has not yet broken our stop loss at $15.50 but it came close today, and because silver is more volatile than gold I think it is prudent to cover both metals now. Our entry points were close to our stop loss lines so we can unload these long positions now with a small 1.5% loss. If gold prices do move down and stabilize between (or at) $1140 and/or $1160 by Jan. 2, I will consider going long again. If gold breaks below $1140, it could plunge to the $900 - $1000 area. I don't think that will happen, but a drop to $1160 or $1140 over the next two weeks looks possible and may be a good setup to buy again. Placing trade orders tonight to sell my gold and silver long positions at market opening tomorrow (Dec.23 - Tuesday).
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