At the moment of writing this article our full 200% net short position in gold,silver and mining stocks is well justified from the risk and reward perspective,Before we begin our analysis we would like to do two things,first we want to say sorry as we didn't update you anything about precious metals while the number of things happened in between. personally we did close our short-term gold long@1260 and silver long before the decline continued again and after getting some profit out of the table we opened gold and silver short when gold was trading at around 1245 and closed this position at 1220,we send those analysis to our group but not here due to little engagement in our ideas by users but from now on we promise you that we will send our daily analysis here so no one will miss out these kinds of profitable trades and now the second thing is we would like you to check our analysis on gold and silver which we are attaching under this idea,That was our first idea send out for trading view where we predicted gold to fall approx 1218 when it was trading around 1350-60, same goes for silver
ok now let's start-yesterday session was a tricky one where gold showed some major reversal signs while rest part of precious metals sector continued to decline, as gold is the most prominent part of precious metals sector should one trust gold's reversal? or should we go with the majority of the PM sector which suggests that nothing happened? was that a reversal for the entire PM sector? are we thinking to open long in gold and silver? the reply is clearer – no way. At least not based on what we saw yesterday. ok, let's take a look at USD index chart-
we saw that USD Index rallied yesterday but before the day was even over it moved back pretty quickly below the previous highs thus giving us two invalidations of breakouts and as you know it is a bearish sign on it own, especially when the daily session is a shooting star candlestick. That’s a classic and strong bearish combination.let's try to dig more with the longer-term chart of USDX
The important thing to note is that the current back and forth movement of price which we are witnessing is something very similar with what we saw in the huge rally of USD in 2014-2015 and we can expect the moves to play out in an identical manner in the future as well, On the long-term chart you can see that the USDX kept on climbing and it seems we are noticing something similar since late may. The most important thing is gold is declining even without the USD rally and it's showing a great sign that once USD rally is back, gold will plunge significantly
Gold-Our previous analysis is well up-to-date there is nothing to change
silver-Our previous analysis is well up-to-date there is nothing to change
Gold's 2013 analogy
we will not go into the details as for why we think the current situation is similar to 2012-2013 decline as we have already done this in our previous post but just to remind you In 2012 and 2013 gold was moving back and forth(we wrote the same thing that day, that was shocking of course)
The action of moving back and forth changed pretty fast and gold declined form the upper part of the bow pattern to it's April's bottom,that was $200 decline in gold we witnessed in an hour or so and whether you believe it or not it can happen again, This kind of move will erase any long position standing on its path and there would be very little time to react and open a short position
The conclusion-our outlook for the gold and silver is extremely bearish for the long term
ASSET--XAGUSD
Sell Limit Price: 15.500
Take Profit: 14.42
Stop Loss: 15.700
ASSET-GOLD
Sell limit Price: 1231
Take Profit: 1142
Stop Loss: 1275
ok now let's start-yesterday session was a tricky one where gold showed some major reversal signs while rest part of precious metals sector continued to decline, as gold is the most prominent part of precious metals sector should one trust gold's reversal? or should we go with the majority of the PM sector which suggests that nothing happened? was that a reversal for the entire PM sector? are we thinking to open long in gold and silver? the reply is clearer – no way. At least not based on what we saw yesterday. ok, let's take a look at USD index chart-
we saw that USD Index rallied yesterday but before the day was even over it moved back pretty quickly below the previous highs thus giving us two invalidations of breakouts and as you know it is a bearish sign on it own, especially when the daily session is a shooting star candlestick. That’s a classic and strong bearish combination.let's try to dig more with the longer-term chart of USDX
The important thing to note is that the current back and forth movement of price which we are witnessing is something very similar with what we saw in the huge rally of USD in 2014-2015 and we can expect the moves to play out in an identical manner in the future as well, On the long-term chart you can see that the USDX kept on climbing and it seems we are noticing something similar since late may. The most important thing is gold is declining even without the USD rally and it's showing a great sign that once USD rally is back, gold will plunge significantly
Gold-Our previous analysis is well up-to-date there is nothing to change
silver-Our previous analysis is well up-to-date there is nothing to change
Gold's 2013 analogy
we will not go into the details as for why we think the current situation is similar to 2012-2013 decline as we have already done this in our previous post but just to remind you In 2012 and 2013 gold was moving back and forth(we wrote the same thing that day, that was shocking of course)
The action of moving back and forth changed pretty fast and gold declined form the upper part of the bow pattern to it's April's bottom,that was $200 decline in gold we witnessed in an hour or so and whether you believe it or not it can happen again, This kind of move will erase any long position standing on its path and there would be very little time to react and open a short position
The conclusion-our outlook for the gold and silver is extremely bearish for the long term
ASSET--XAGUSD
Sell Limit Price: 15.500
Take Profit: 14.42
Stop Loss: 15.700
ASSET-GOLD
Sell limit Price: 1231
Take Profit: 1142
Stop Loss: 1275
