At the moment of writing this alert our full 200% net short position in gold, silver and mining stocks is well justified from the risk and reward perspective. The HUI Index Special Breakdown
.The HUI Index broke it's previous 2018 low and moved below the 61.8% fib retracement .There had been almost 5 attempts to break below this specific level but all times they failed and were followed by significant rallies .As history tends to repeat itself will HUI index once again about to rally just like it did in previous 5 attempts and if it did happen gold and silver will surge profoundly right?-our answer is no .The HUI Index broke below its 2018 low in both intraday and closing price terms, We are witnessing profound weakness in gold miners and that's convinced us that the breakdown will be successful this time .The thing that makes the HUI breakdowns really special is the yesterday's volume we saw which was the second highest in this months and confirming the bearish case even more .Gold miners declined once again after the breakdown whereas before in all of the 5 attempts we saw a significant rally after reaching the same level and it already shows that this time is different-
Gold and Silver gave you another chance, you missed it again?
.Based on the currency Japanese yen we saw a very small upswing in gold and silver and that rally seems to be already over .The correction was so small that no one even noticed it, Gold moved to about $1228-29 and gave you another chance to enter short .Situation in silver is more bearish right now as the breakdown is highly confirmed .Gold and Silver didn't close below the Friday's closing prices and it was obvious that mining stocks will not either further but the opposite happened and that's making our bearish view even stronger
The conclusion-our outlook for precious metals are very bearish for the medium and long term, In this short update we discussed the special breakdown of HUI Index, the second is the relative weakness in them and the third we talked about the weakness of the entire PM sector relative to the currency sector. This combination is very bearish and we think our short signals in gold, silver and mining stocks will give us significant profit before we exit this trade
we will keep you informed anyway, many regards-Neeraj Pandey
Our existing positions ASSET--XAGUSD
Sell Limit Price: 15.500
Take Profit: 14.42
Stop Loss: 15.700
ASSET-GOLD
Sell limit Price: 1231
Take Profit: 1142
Stop Loss: 1275 ( It doesn’t, however, mean that we won’t adjust (limit, close or even reverse) the position before this price level is reached. If we get enough confirmations other than gold’s price level itself (for instance, mining stocks show strength and silver -0.06% reaches a very important support level , while the USD reaches a key resistance), then we might do it, just like we’ve done previously (which ultimately caused the short position to be more profitable).
Last time you were correct but somehow i feel this time you may hit yr stop loss. Dont short.
NeerajPandey
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@LetsBeMillionaire, copying this from our last update-personally we did close our short-term gold -0.12% long@1260 and silver -0.06% long before the decline continued again and after getting some profit out of the table we opened gold -0.12% and silver -0.06% short when gold -0.12% was trading at around 1245 and closed this position at 1220
at the moment we are in a short position which we entered @1231 in gold and 15.500 in silver--i will update once we will close the signal-profit or loss, our bias is sell anyway
NeerajPandey
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@LetsBeMillionaire, -The next reversal date for gold -0.34% is August 21st and the reversal date for gold -0.34% stocks is August 23rd
With multiple factors pointing to a looming and significant decline and two important reversal dates in about 2.5 weeks, we can see a sharp slide very, very soon
LetsBeMillionaire
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@NeerajPandey, I believe 1180 will b the new short term base. but already gold is oversold. DXY almost at short term peak. tehre has to be a relief rally coming soon I read article that short on Gold is all time high based on COT report. I m going to tart adding long at 1180 onwads and will keep on avging down. Already lost big on LONG game when gold was at 1219. Lost in GLD AND SLV calls. Added small SLV calls today at EOD. will keep on avging down if SLV goes down further. 1142 looking slight dificult.
NeerajPandey
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@LetsBeMillionaire, Based on the data that we have right now-gold is likely to plunge to either the 2015 low (about $1,060), or the late 2016 low (about $1,120).more on this on next update
LetsBeMillionaire
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@NeerajPandey, Job data wasnt good but gold didnt pick up last Friday. heavy shorts piling on gold and didnt allow to move up. Not seeing rally until 1180. but next rally has to be huge with big time SQZ. go long on any reversal confrmation.