The Downtrend Resumes
Warren Bevan | Jun 07, 2015 02:39AM ET
Markets began to act sloppy this week and began to break below breakout levels late in the week.
I locked in all my gains Thursday and am now in an all cash position and looking for a little correction.
Unfortunately, Friday saw two of the stocks I sold have stellar days to the upside and I just watched.
I can’t win them all but the churning action we’ve seen more and more of in the past week makes me happy to have not take a single loss and just locked in gains.
Churning often leads to moves lower and markets are showing failed breakouts and June tends to be weak so I am cautious here.
Gold and silver broke below the patterns I showed here last weekend and are set for more downside once again.
When the metals are breaking a perfect bearish pattern which says lower, as they are now, all I can hear are the crickets!
Gold lost 1.57% over the past week, which isn’t a lot, but it is breaking the continuation pattern triangle I have shown in this free letter.
There really isn’t much else to say.
Gold has support next at $1,150 and then we see what builds on the charts.
Subscribers knew the short level and many are now short gold and looking to book gains at $1,150.
I could go on but there is no need.
Charts keep things simple and clean if there is a pattern, if not, there is even less to say.
Silver lost 3.68% this past week and also broke below the bearish triangle pattern I showed here last weekend.
Silver found support near $15.75 since that is support on the chart and now it looks like it will move back up to test the $16.50 level.
The dominant trend remains lower and that’s that.
We may see some range bound trading for a few weeks or more between $15.75 and $16.50.
Platinum lost 1.28% and is following gold and silver as always.
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Platinum tested the $1,090 level I talked about here last weekend as a support level and it looks set to bounce now.
I’d look for a range trade between $1,090 and $1,120 for a few weeks or more.
Palladium lost 3.20% last week and broke below the large triangle pattern I showed you here in me free weekend letter last weekend.
Palladium stalled around the $760 support level and flipped it to resistance by trading a few days under it before moving lower once again towards the next support area at $730.
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