The end of the previous week was rich in signals as gold, silver and mining stocks all reversed along with the USD Index. Gold closed the week below the rising support line and the implications should not be ignored even by those who usually focus on fundamentals alone.
Why? Because in the short- and medium term, the important technical developments will shape the price – not the fundamentals. Why should one care? In early 2008 silver was priced above $20 and in late 2008 it was priced below $10, even though the fundamental outlook didn’t change. Similar price swings can make a lot of money for those who pay close attention to what’s going on – but knowing about positive fundamentals is not enough.
In the following part of the alert, we’ll show you what technical signs were available on Monday and Friday (this article is based on our Monday’s and Friday’s Gold & Silver Trading Alerts – we had opened short positions in metals and miners on Friday) that warned about the looming slide.
Let’s take a look at the charts (charts courtesy of
This post was published at SilverSeek on October 4, 2016.
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