Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | UraniumSeek.com 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

SWOT Analysis: Rising Inflation Could Lift Gold Prices
By: Frank Holmes

Why Silver Could Replace The Dollar
By: Hubert Moolman

In Next Crisis, Gold Won’t Drop Like 2008
By: Keith Weiner

Sentiment pitfalls, the gold edition
By: Steven Saville

Gold Season – Is This It?
By: GoldCore

Technical Scoop - Weekend Update August 19 2018
By: David Chapman

Bridging the ‘fourth turning’ with gold
By: Michael J. Kosares

Bitcoin: Landing Gear Engaged. Bottom Is Still a Process
By: Ryan Wilday

The Good News Economy
By: John Mauldin

Great News For (The Remaining) Gold Bugs: Gold AND Silver Futures Speculators Are Now Net Short
By: John Rubino

 
Search

GoldSeek Web

 
Gold & Silver Trading Alert: Gold Slides Again as Expected


 -- Published: Thursday, 10 September 2015 | Print  | Disqus 

Gold Trading Alert originally published on September 10th, 2015 7:49 AM:

 

Briefly: In our opinion, short (full) speculative positions in gold, silver and mining stocks are justified from the risk/reward point of view.

 

Gold, silver and mining stocks declined once again yesterday, but this was not surprising to those who followed our analysis. We moved to the short side many days ago and the profits have just increased. Will they increase even more?

 

Quite likely. The gold chart features a good reason for it

(charts courtesy of http://stockcharts.com).

 

http://news.goldseek.com/2015/10.09.15/sc-1.png

 

To a large extent, our previous comments on the above chart remain up-to-date:

 

We just saw another daily close below the neck line of the bearish head-and-shoulders pattern, which makes the breakdown more confirmed. Based on our experience, it usually takes 3 trading days for a given move to be completely confirmed, so the situation will become even more bearish if gold closes below the neck line also today (which seems quite likely).

 

Gold indeed closed below the neck level of the head-and-shoulders pattern and that’s a very bearish sign as it means that the breakdown was confirmed. A move below $1,080 has just become much more likely and so has the chance of increasing our profits on the current short position.

 

http://news.goldseek.com/2015/10.09.15/sc-2.png

 

From the non-USD perspective, we see that gold is at its previous lows. It’s not at the 2013 / 2014 lows but its certainly at the 2015 ones. The medium-term trend remains down and it seems very likely that gold will move even lower in the coming weeks.

 

http://news.goldseek.com/2015/10.09.15/sc-3.png

 

We recently commented on silver’s performance from the short-term perspective and in today’s alert we would like to focus on the long-term one. Silver’s recent move higher is almost invisible on the above chart and that tells us something about this move’s importance. Silver is below its 2010 low and it’s already after a rebound that followed the first attempt to move below it.

 

Consequently, it’s much more likely that silver will manage to move below the 2010 low at this attempt. If it doesn’t, it’s not likely to rally significantly anyway, as the declining red dashed resistance line is relatively close. The outlook remains bearish.

 

http://news.goldseek.com/2015/10.09.15/sc-4.png

 

We’ll change the perspective also in the case of mining stocks. The decline in gold stocks proceeds in tune with what we saw in 2008 and we have just seen an important signal that miners will move considerably lower in the coming weeks. The Stochastic indicator based on the weekly closing prices flashed a sell signal and these signals are not to be ignored – they’ve been quite reliable in the previous several years.

 

Summing up, the precious metals sector declined as expected, but it seems that the real decline is only beginning and that our profits from the short position will be much higher before the decline is over. We just saw 2 additional reasons for metals and miners to move lower: the verification of the breakdown in gold and a sell signal from the Stochastic indicator, and both of them have quite strong bearish implications. Even if we see a small corrective rally shortly, it will likely not change the main medium-term trend, which remains down.

 

To summarize:

 

Trading capital (our opinion): Short position (full) position in gold, silver and mining stocks is justified from the risk/reward perspective. Specific stop-loss orders and initial target prices are available to our subscribers.

 

Long-term capital (our opinion): No positions

 

Insurance capital (our opinion): Full position

 

Thank you.

 

Przemyslaw Radomski, CFA

Founder, Editor-in-chief

http://www.sunshineprofits.com

 

* * * * *

 

Disclaimer

 

All essays, research and information found above represent analyses and opinions of Przemyslaw Radomski, CFA and Sunshine Profits' associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Przemyslaw Radomski, CFA and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. Radomski is not a Registered Securities Advisor. By reading Przemyslaw Radomski's, CFA reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Przemyslaw Radomski, CFA, Sunshine Profits' employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.

 


| Digg This Article
 -- Published: Thursday, 10 September 2015 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2018



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer

The views contained here may not represent the views of GoldSeek.com, its affiliates or advertisers. GoldSeek.com makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, is strictly prohibited. In no event shall GoldSeek.com or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.