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."
The below 4-hour charts of gold and silver (updated from Monday) show the breakdown, which immediately led to some downside follow-through.
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!
