Metals on the edge

Gold and Silver opened particularly weak (along with WTIC Oil), and despite closing off their lows, the declines were indicative of a monthly trend that remains severely to the downside. There is very strong resistance at the old broken support, around SLV $20.50


SLV'60min

SLV, daily

Summary

*I was stopped out of SLV early this morning, with the break under the rising channel - as best seen on the hourly chart.

SLV closed -11 cents @ $19.03. Frankly, that is a pretty weak close, and sets up what could be some wild price action on FOMC Wednesday.

Underlying MACD (blue bar histogram) cycle on the daily chart ticked lower for the fifth consecutive day, and is set to go negative cycle in about 2-3 trading days.

Indeed, by the end of this week, baring a clear break above the old support ($20.50), SLV - and GLD, will probably start yet another multi-week down cycle.

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Mid-term downside targets remain SLV 12/10, with GLD in the 90s.