Metals: Technical damage not a reversal in trend
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
I wrote Monday that, in my opinion, dips in metals were likely a buying opportunity until such time as technical damage occurred. As a regular reader soon after commented, "Technical damage is done."
Note how the breakdown in the price for both metals was retested to the upside yesterday intraday – but failed – leading into this morning's increased selling. The bottom of the yellow highlighted boxes are where I believe prices may find support, as participants price in the now almost guaranteed 25bp overnight rate hike coming in May.
Traders should be looking for signs of a bottom prior to re-entering on the long side while considering the greater trend is still up; therefore, signals could manifest suddenly and as early as over the next few trading days.
Thanks and good luck!