PMs Wednesday analysis
At the moment of writing this alert our full 250% net short position in gold 0.14% 0.79% , silver -0.06% -0.26% and mining stocks are well justified from the risk and reward perspective.
In other words, for the first time ever, we increased the position size to 250% of the regular position.
GDX ETF-the outlook for mining stocks remains just as bearish as it was previously (extremely) and the same goes for the rest of the precious metals sector.
Uncertainty Regarding Fundamental Factors-The Fed interest rate decision happened and this week will also feature the latest employment numbers,This means that the highest uncertainty is right now and precious metals should be rallying or at least be at some temporarily high price level. We haven’t seen any rally recently except for the very weak consolidation,PMs are not reacting as they should, which is a bearish sign.
Now, if the markets are surprised in a big way positive for PMs, then we may see a temporary upswing… And nothing more than that is likely anyway. In other words, at this time, the worst-case scenario (for those aiming to profit on declining gold and silver prices) is that we’ll see a brief correction in profits after which they are likely to move to new highs anyway, as the medium-term decline continues. This is a rather unlikely outcome, though.
The conclusion-our outlook for precious metals is very bearish for the medium and long-term, we will keep you informed anyway,
many regards-Neeraj Pandey
Our existing positions
ASSET--XAGUSD
Sell Limit Price: 15.500
Take Profit: 12.80
Stop Loss: 15.700
ASSET-GOLD
Sell limit Price: 1231
Take Profit: 1080
Stop Loss: 1275
( It doesn’t, however, mean that we won’t adjust (limit, close or even reverse) the position before this price level is reached. If we get enough confirmations other than gold’s price level itself (for instance, mining stocks show strength and silver -0.06% -0.26% -0.19% -0.06% reaches a very important support level , while the USD reaches a key resistance), then we might do it, just like we’ve done previously (which ultimately caused the short position to be more profitable).
In other words, for the first time ever, we increased the position size to 250% of the regular position.
GDX ETF-the outlook for mining stocks remains just as bearish as it was previously (extremely) and the same goes for the rest of the precious metals sector.
Uncertainty Regarding Fundamental Factors-The Fed interest rate decision happened and this week will also feature the latest employment numbers,This means that the highest uncertainty is right now and precious metals should be rallying or at least be at some temporarily high price level. We haven’t seen any rally recently except for the very weak consolidation,PMs are not reacting as they should, which is a bearish sign.
Now, if the markets are surprised in a big way positive for PMs, then we may see a temporary upswing… And nothing more than that is likely anyway. In other words, at this time, the worst-case scenario (for those aiming to profit on declining gold and silver prices) is that we’ll see a brief correction in profits after which they are likely to move to new highs anyway, as the medium-term decline continues. This is a rather unlikely outcome, though.
The conclusion-our outlook for precious metals is very bearish for the medium and long-term, we will keep you informed anyway,
many regards-Neeraj Pandey
Our existing positions
ASSET--XAGUSD
Sell Limit Price: 15.500
Take Profit: 12.80
Stop Loss: 15.700
ASSET-GOLD
Sell limit Price: 1231
Take Profit: 1080
Stop Loss: 1275
( It doesn’t, however, mean that we won’t adjust (limit, close or even reverse) the position before this price level is reached. If we get enough confirmations other than gold’s price level itself (for instance, mining stocks show strength and silver -0.06% -0.26% -0.19% -0.06% reaches a very important support level , while the USD reaches a key resistance), then we might do it, just like we’ve done previously (which ultimately caused the short position to be more profitable).
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