GOLD AND SILVER ALERT (6:30 pm EST)
After analyzing the precious metals market over the weekend, I've decided to take profits and sell our short positions in gold and silver at this time. Both metals are close to or directly at several zones of strong support, and there are now numerous technical and cycle indicators suggesting we are at or very close to the bottom of this correction. While both metals could drop a bit more, it is also possible the bottoms are already in, so it is considered prudent to take our profits here. We will now reverse our trading strategy and direction and be looking to take long positions in both gold and silver very soon (perhaps early next week) as we are likely at the beginning of a new cycle in these metals and the start of a strong rally which could take prices much higher.
Note that there is very strong support for gold around the $1500 area and for silver around $26. Should the metals break clearly below these prices, it would be a very bearish development and we would postpone going long. This scenario is considered highly unlikely right now.
After analyzing the precious metals market over the weekend, I've decided to take profits and sell our short positions in gold and silver at this time. Both metals are close to or directly at several zones of strong support, and there are now numerous technical and cycle indicators suggesting we are at or very close to the bottom of this correction. While both metals could drop a bit more, it is also possible the bottoms are already in, so it is considered prudent to take our profits here. We will now reverse our trading strategy and direction and be looking to take long positions in both gold and silver very soon (perhaps early next week) as we are likely at the beginning of a new cycle in these metals and the start of a strong rally which could take prices much higher.
Note that there is very strong support for gold around the $1500 area and for silver around $26. Should the metals break clearly below these prices, it would be a very bearish development and we would postpone going long. This scenario is considered highly unlikely right now.
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