The Downtrend In Precious Metals Resumes

Markets began to act sloppy this week…breaking to break below breakdown levels late in the week.

Consequently, 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 suffered a single loss, I merely locked in gains.

Churning often leads to moves lower. Moreover, markets are showing failed breakouts. Additionally, June tends to be weak…so I am cautious here.

Gold and silver broke below the patterns I showed here last weekend. And now 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. Nonetheless, it is breaking the continuation pattern triangle I indicated in this free letter. There really isn’t much else to say.

Gold has support next at $1,150…and then we will 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.

Charts keep things simple and clean if there is a pattern. To the contrary, there is even less to say.

Silver lost 3.68% this past week…and also broke below the bearish triangle pattern I mentioned 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. 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.