Metals on the edge of support

Another day lower for Gold and Silver. Gold is very close to taking out the GLD 158 level, which opens the door to a further significant drop. Silver is sitting right on the 200 day MA, and is similarly on the edge.


GLD, daily

SLV, daily

Summary

Near term trend is very weak, and I expect at least a brief break of support.

Primary targets are gained via the weekly/monthly charts (not shown)...

suffice to say, the targets are....

GLD 156/55
SLV 29/28

I would be very surprised if we go much below those levels in the next week or two.
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My broader outlook is for a very significant rally into the early summer, with SLV 38/40, and GLD in the 180/85 area.

The 'chase it higher' levels are very clear, which right now, is $31 for SLV, and $162 for GLD.

Metals on the slide

Whilst the main equity market continues to hold together, the precious metals slipped significantly lower. Gold is now close to taking out the low from mid December, and closed well below the key 200 day MA. Near term trend is most certainly downward.


GLD, daily

SLV, daily

Summary

The metals opened weak, and maintained their declines across the trading day. The weakness was especially noticeable with a dollar that was only a touch higher, and with the main market largely flat.

Near term trends - as suggested  by the weekly charts...

GLD, 157/56...possibly 154/53
SLV 28.50, possibly 27.50.

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With continued intervention from the Fed - especially via the POMO program, I'm still going to guess the metals will see a very significant ramp into the late spring..after this fifth wave lower...which should wash-out the weakest of bullish hands.

Silver snaps to the downside

Both Silver and Gold snapped moderately lower in the morning, yet it was a somewhat turbulent days trading. A morning ramp...but that also failed, and then weakness into the close. The daily cycle is set to turn negative late Friday/early Monday.


SLV'60min

SLV'daily

Summary

Just a brief update..

..it was pleasing to see SLV snap lower at the open, but it sure wasn't easy seeing the ramp take SLV right back to the upper wedge line.

The close was somewhat bearish.

Next soft downside target is SLV 29.75..although we could slip much lower to 28.50 next week.

I remain short SLV, but looking to flip to long within the next 3-7 days..and then hold long into the late spring..with a target of 38/40.