Gold fails key test – Looks bad
As gold and silver met their moment of truth on Monday they failed miserably. Both have reversed and look to be headed lower. The patterns have broken down making the metals a more attractive sale then a buy at this point.
If you remember that the key to any market is the price action and the footprints, they leave its obvious the metals have reversed and will now test lower levels. There is overhead resistance in gold at 1495 and silver at 17.50.
We are now on the short side of both markets and are looking for a test of 1440 gold, 16.70 silver. Trading and investing a based on a couple of things, emotions and patience. The metals markets have turned negative, we will be sellers at resistance levels. The bottom line is simple, the metals look lower until this new pattern changes.