Precious Metals: Technical Downtrend
Tiho Brkan | Oct 01, 2013 03:57AM ET
Chart 1: Precious metals sector still in a technical downtrend
In recent days and weeks, I have noticed that the PMs perma bulls have thrown in the towel and some have even started shorting Gold (about two years too late... no offence to anyone hahaha). The grid above shows the precious metals sector still in its technical downtrend. Gold, Silver, miners and its junior counter parts have all been in a major sell off since QE3 was launched in September 2012.
While the downtrend remains in place, it is also worth noting that (so far) new lows have not yet been made. The panic sell off into June and July of this year has seen follow through relief rally back to the trend line (chart above). The main question for Gold bulls is whether a break out is coming or if the price will disappoint yet again making new lows?
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