patience pays off[ ]At the time of writing this article/idea our full short position is now justified in both of the precious metals gold and silver from the risk and reward measurement
Not too long ago on friday we closed our net short position in both metals in our group,since then we have seen huge rally in gold and silver as expected before,we already mentioned our short term target area in yesterday post and it was expected to reach at the end of week but yesterday rally was so significant that both metals hit there target areas,before going into chart we want to emphasize you that don't try to look charts as a trading system,it's rather a tool which helps you to find good entry,stop loss and take profits that's it,there are many long term fundamental factors which helps us to add long or short position in our portfolio,ok now let's dive into charts
In yesterday post we mentioned that gold could move 1340 zone before it plunges again why 1340? that's where the rising resistance line is,we argued that once it hits that zone that wlll be a strong bears signal and we will be ready to net short our position but before it plunges more in a dramatic way you can see a small upswing again in both of the metals,most important to note is yes gold market is giving strong bearish signals but more strong confirmation is coming out from other precious metals sector
silver sector-until now we didn't mentioned silver sector in our idea but from now you will see silver,mining stocks as well as usd index analogy in our articles,on dec 15,2017 we have seen a similar daily rally that we saw yesterday,shortly after the rally silver plunges,bearish implication were huge,so are we going to see the same decline in silver this time? we already did but lot more to come!! not only because we are comparing this present scenario with past but because silver outperformed gold multiple times before declining,we already mentioned in our articles(not here sorry) that once silver will reach to our target area our bearish outlook will be more confirmed
ok let's move into us dollar index,keep in mind thay usd index is above its very important support level so long term outlook is very bullish but before the end of week we can expect some volatilty as mario draghi speech and emloyment numbers are about to come so the question is will gold and silver will rally up again,they can but less probable as they have reached our areas of interest so outlook is very bearish now,but anyways we will update with our post if any major changes will happen in metal sector,
gold-1st target-1230 stop loss-1379,entry price-1325
silver-1st target-14.730 stop loss- 17.300 entry- 16.500
if you are interested in intraday signals p.m me we will provide you it free
stay tuned
