What Happens To Gold And Silver Next? Look Out Below?

Well as we mentioned during the weekend, if those Friday LODs were broken, that would start us on a path of lower prices and yes, thats exactly what happened for silver and gold as they both put in lower highs and lower lows to start the week.

Some mining stocks are starting to break down as well. Two names that are coming into a break down in price are GOLD and SBGL. Watch and see if they either bounce or break down in the coming days.

The other thing to watch as to how much more selling is coming is how are the miners that experienced reversals to the upside on Thursday. Some individual names to look for clues are ABX, NEM, FNV. These names had a good ER reaction and might benefit from buyers because of that. But more importantly, see if that Thursday low holds or gives. Obviously, if that low doesn't hold in the coming days, its telling us that the market still doesn't want those stocks at those prices.

To confuse everyone even more tho, we had some gold miners, albeit, some very small ones, make 52 yearly highs today lol. Thats right, despite a dropping gold price, to gold names managed to make yearly highs. Those two were GSV and AKG.

Hey Montana..you just won the "Advisor of the Year" award with that prognostication....people pay HUNDREDS of dollars a month to hear that from a guy with a "certificate" on his wall! Maybe you should consider yourself a "Mining Consultant"
Seriously..it is what is is, and nothing else...I don't own my columns red or green..they just are numbers that change. I, like you Montana, know they will move...speaking of moving...all 6 of my OTC miners on my 1 acct. today never showed updated numbers..they sat at 0 all day long...weirdness...I clicked on each one, and saw some up, some down. Some kind of bug in the system.
Just hoping the next leg up is a dandy..this consolidation period will end...when, is anyone's guess. All major exchanges have the so-called "death cross" formation...the dollar seems on an uptick...could use a little "bad news" to help gold!!

Thanks YUP..feel free to list anymore miners you feel should be dropped.

Miners going out on the LOD, the selling is not done here.

Again, uptrend remains but for the time being, the momentum has been sucked out of gold and silver and along with that, the miners will be dragged down as well. As an example, look at FNV, a stock I have longed and traded. A proper buy point for it after its run up would have been when it hit 62.10, a yearly high.

That happened on 3/11. But look at where it stands today, at 61.79, which basically negates 2 months plus of progress. That is a negative and as a trader, its telling me there isn't any support for now to push it higher. Also notice how it gave up all gains from its reversal on 5/19. More proof that the buyers simply walked away for now.

Until the metals start with a consistent series of higher highs and higher lows, this will continue to bleed out.

Now I can see the general public, which is the majority of the time clueless and cannot grasp the simplicity of price action saying "but but but but but but.... he said its in an up trend, that its going higher".

OF course we are in an uptrend. However, not all trends run straight up. In fact, nothing really goes straight up (or down) in markets. Tie in the fact that there is TONS of overhead resistance and it is easy then to comprehend why we are seeing this recent bout of selling.

Typically what should happen going forward, based on price action and how markets are currently acting, is gold and silver will fall a bit more and then go into a period where they basically do nothing at all and later we should see an attempt at the previous yearly highs.

For now tho, its clear the market is shifting its attention away from silver and gold.

i think the collapse is coming guys, right before the election

right before 2008 election things started to slow down and prices dropped, housing bubble pop, interest rates go up, experts said everything was going to be fine

right before the 2001 election the dot com bubble burst, prices dropped of commodities, interest rates went up, NASDAQ dropped

Lets see for 2016
CHECK - new president election, trump openly wishes for bubble to burst before election than into new election
CHECK - commodities drop in price, consumption goes down, economy slow downs
CHECK - interest rates starting to go up
CHECK - bubble = derivatives from major banks altogether sum to more than 13x nice thirteen! times the national debt! Because if they fail the big banks will just get bailed out again like they did in 2008. So it makes since for them. Bubble seen as to big to fail seen as going up in value for ever like housing loans of 2008! to big to fail harder they fall.
CHECK - experts say everything is ok

I think we should wait until the upcomming recession hits and commodities are at all time lows. PM will drop to all time lows. Than once the banks start getting bailed out again PM (and all commodities) shoot up through the roof.

Seems we have everything we need for the formula guys.

oh look remember when SE set a record of sales? Will I think silver maple leafs just set record for the quarter. Yikes!k

Either way I think we should wait until middle of recession than just buy any commodity at rock bottom prices, than sell a year or to into recovery years.

But buying rare coins that hard to come by now is hard to resist uhhhh I can't I shouldn't I should wait ummmmm but what if I can't find one after the collapse

or maybe instead of pm I should just buy a house durring the collapse rather get them low than high

couple of observations-

Gold and silver will need a lot of time to get going again. The selling that happened has knocked them down into new ranges.

It remains to been seen what happens after the bounce. Whats key going forward is is certain areas in price get violated on the downside.

Gold- I would be looking to see if 1206 gets broken in time. Not saying it does but if the selling picks up after a bounce, breaking 1206 brings us lower prices.

Silver- After this bounce I want to see if silver will break down and first attempt to retrace to 16. Again, not saying it does but that is one area to consider if silver continues to pull back.

Gold and silver need time going forward to make new bases before trying to move up, other continued selling will result in lower prices, simple as that.

Miners- Dont have time to put up charts. For now tho, two of the uglier stocks I mentioned yesterday got a save for now. GOLD and SBGL bounced. That doesn't mean its all clear. These two miners will need a long time before they are worth buying.

OTher miners received continued support at break out areas. FNV once again received buying support from a previous 52 high b/o area. The buyers for now remain strong in that area. However, if that area keeps getting tested to the down side, it will eventually give in and would result in lower prices.

We are no longer seeing the same type of strong buying as we did weeks before. There is a clear change of tone present.

Does this mean the uptrend is over? Not for now. IT will take a lot of selling and without let up, to set these stocks up on the short side.

Again, all these charts are going to need a lot of time to reset and form new bases.

Gold making yet another run at the LOD from yesterday as I type this up. A break of 1217.70 brings gold lower. Silver is pretty much flat for now.

Intra-day gold miners are putting in reversals from their highs as well. Not typically signs that the selling is done.

I would not be surprised to see gold touch the lower end of the current rage of 1190s if this selling continues.

I joined CCF today mostly to post on this thread. I ran a factory for a day trader from 92-11. I learned everything NOT to do while investing and trading. I started buying silver and gold stocks in 02 made about %600 until through the wonders of margin I managed to loose most of it in 08. I sold the last of my stocks in 11. Near the end of last year my wife and I decided to sell the unwanted coins in our collection to buy more silver. I managed to convince her that for investment purposes stocks would have much greater returns. There have not been many times I voice my opinion outside of yahoo finance message boards. SSRI, NTO, WTZ are basically the only three that I used to recommend. I post on yahoo under the same name and anyone can check my record there. In January we bought EXK (Endeavour Silver) twice and added again in February. I prefer to discuss my outlook for a stock or PM's during the pull backs like now. I feel that one of the most important charts is gold/silver ratio. I feel the move lower in the ratio will come very soon as the chart for gold looks much worse than that of silver. I feel that we will see silver up near 20 while gold hangs around 1200-1300 for the summer. I expect a sharp spike in silver down to about 15.75 with a very quick rebound. I have a GTC buy on EXK at 2.72. I am also holding just a bit of DSLV (3x silver short) as a practice trade with a GTC at 40.18 and stop at 35.18 (almost got stopped out on today's head fake) I am a silver "perma-bull" and only bought it because I couldn't short CDE due to a non-margin pact with the Boss.
CDE and HL look especially overextended to me and experience says that the market will shake out the weak hands in all the PM stocks before going higher. I have to agree with the previous poster who talked of a SM (stock market) crash soon. The major issue I see with that is the abundant use of "helicopter money" and the lack of places to put it. The yield on the ten year treasury says to me that weakness in the SM is inevitable. At the same time as the SP500 is breaking up through resistance. I guess the market can stay irrational for a very long time. Another important chart is copper the recent weakness screams recession at this point.
I hope that my writing is understandable as my mind works 10x faster than my fingers.
My opinion
Ed