Capitulation still on the table
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Friday’s reversal and late sell-off keeps the door to $1,850 open, as gold is once again challenging $1,875 this morning. Silver has gone on to make a lower low after failing to hold support at $23, which coincided with a trendline we showed last week. Traders who respected stops just below that trendline now have a chance to re-enter at lower prices. Platinum continued its rally to $950 before turning back down and is currently holding support at $935 as of this writing. Traders who entered long at $915 may consider walking away with a small profit should $935 fail to hold.
With the FOMC meeting around the corner and bearish sentiment abound in multiple asset classes, traders should continue to look out for volatility and the risk of downside capitulation. Seasoned traders may look upon capitulation events as some of the best risk/reward setups on the long side.
Thanks and have a great week,