A ultimate short but where's the decline
At the moment of writing this article/idea our full net short position in gold,silver and mining stocks is well justified from the measurement of risk and reward
Multiple of signals are pointing to lower prices in gold and silver as we discussed in our previous post but really nothing happened,well at this moment current price is way below than our entry point(1330) and we are in profit but that doesn't justify the decline we were expecting,so really what is happening,if we were supposing a big decline to happen but it didn't occur yet what does it mean for us? does it mean a bullish trend is coming in our way-a kind of invalidation?
Big no,as you can see on the above chart,yesterday's low volume didn't really change anything,the thing which only happened is the decline is simply delayed by a day and it could be delayed even further,we are expecting a big volume tomorrow on fed meeting as it can precedes significant decline in precious metals sector,For predicting any sizable decline seems like a guess right now but from our experience we could see strong decline in metals in a volatile manner
You may find it difficult to believe due to all the previous boring sessions in which really nothing happened,but as we started posting our articles/idea here there is one thing you should keep in mind,In our first 3 articles our bias was neutral in gold and silver then after we saw some potential we have given you a suggestion to short gold and silver including our group members and we make decent profits,after that we suggest for short term buying opportunity and t.p were reached then we took a pause and after some valid confirmation we again gave you a suggestion to short these metals in your portfolio and at this time prices are well below our entry price,IN short we want to address you that we have spend countless hours to deal in precious metals market but at the end we can only suggest you what to do,after that it's your own decission to go with it or not,
ok let's get into charts and try to make an insensitive decision without getting attached to our current position,
The first thing to note is the 2011-2013 decline and 2016 decline started with exact same manner,we also discussed the similarity in the case of euro in group when gold has formed it's tripple top and after that a small upswing also followed it
In both of our cases gold declined in a drastic manner after the breakdown below the recent low,in the above chart you could clearly see that the 50% retracement in 2013 and 2016 is pattern at the middle ,the 0% is the bottom and 100% is at the top
but what does it means for us? well it means a lot because the exact same thing gold has formed in previous days
Do you remember how gold declined in early nov 2016 well we did,after going back and forth above 1300,gold finally broke below it and declined over 50 dollars in just a single day,are we going to witness the same? yes no doubt it may take it's time but after all history repeats and every time it repeats it make you learn something very valuable
overall impication are very bearish at this time in gold,silver and mining stocks and a big decline is just around the corner,we will not write about silver again as our previous comments on silver and mining stocks is well up-to-date you can see it in our previous post,
anyway we will keep you updated
our positions-gold entry-1330 ,stop loss-1386 1st t.p-1280
our position-silver entry-16.700 stop loss-17.440 T.p-14.630
Multiple of signals are pointing to lower prices in gold and silver as we discussed in our previous post but really nothing happened,well at this moment current price is way below than our entry point(1330) and we are in profit but that doesn't justify the decline we were expecting,so really what is happening,if we were supposing a big decline to happen but it didn't occur yet what does it mean for us? does it mean a bullish trend is coming in our way-a kind of invalidation?
Big no,as you can see on the above chart,yesterday's low volume didn't really change anything,the thing which only happened is the decline is simply delayed by a day and it could be delayed even further,we are expecting a big volume tomorrow on fed meeting as it can precedes significant decline in precious metals sector,For predicting any sizable decline seems like a guess right now but from our experience we could see strong decline in metals in a volatile manner
You may find it difficult to believe due to all the previous boring sessions in which really nothing happened,but as we started posting our articles/idea here there is one thing you should keep in mind,In our first 3 articles our bias was neutral in gold and silver then after we saw some potential we have given you a suggestion to short gold and silver including our group members and we make decent profits,after that we suggest for short term buying opportunity and t.p were reached then we took a pause and after some valid confirmation we again gave you a suggestion to short these metals in your portfolio and at this time prices are well below our entry price,IN short we want to address you that we have spend countless hours to deal in precious metals market but at the end we can only suggest you what to do,after that it's your own decission to go with it or not,
ok let's get into charts and try to make an insensitive decision without getting attached to our current position,
The first thing to note is the 2011-2013 decline and 2016 decline started with exact same manner,we also discussed the similarity in the case of euro in group when gold has formed it's tripple top and after that a small upswing also followed it
In both of our cases gold declined in a drastic manner after the breakdown below the recent low,in the above chart you could clearly see that the 50% retracement in 2013 and 2016 is pattern at the middle ,the 0% is the bottom and 100% is at the top
but what does it means for us? well it means a lot because the exact same thing gold has formed in previous days
Do you remember how gold declined in early nov 2016 well we did,after going back and forth above 1300,gold finally broke below it and declined over 50 dollars in just a single day,are we going to witness the same? yes no doubt it may take it's time but after all history repeats and every time it repeats it make you learn something very valuable
overall impication are very bearish at this time in gold,silver and mining stocks and a big decline is just around the corner,we will not write about silver again as our previous comments on silver and mining stocks is well up-to-date you can see it in our previous post,
anyway we will keep you updated
our positions-gold entry-1330 ,stop loss-1386 1st t.p-1280
our position-silver entry-16.700 stop loss-17.440 T.p-14.630
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