Analytical Charts - Jim Wyckoff
Gold, silver and platinum hold support; what's next?
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Featuring views and opinions written by market professionals, not staff journalists.
The action in gold, silver and platinum has been ugly with all three drifting lower. On Wednesday, they all held key support levels and are bouncing this morning. Gold went through $1,600 in the June futures, silver $14 in the May futures and are both above those key levels. Platinum came down to $700 in the July futures but never violated that level.
As we wrote the other day, the metals look weak and that hasn’t changed. The fact that they were able to hold key levels gives the bulls some hope but doesn’t change the pressure they are under. Other than holding support, nothing about the metals looks good.
At this point, we are still long in all three and will not be reversing until there is proof that the trend has changed. We only adjust trades when our algorithm changes, and for now it says to be long. If there is a directional trade, it won’t be until tomorrow morning. As bad as they look, we will hold but not add.