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

@montanacmr

what you described in your question is called swing trading, where you buy the lows and sell the highs... it is not trend trading/investing. A swing trader is working to identify the price range, a lower end and a higher end. Once they have found it, they buy the lows of the range and sell the highs. They might even sell the highs.

and no, it doesn't make any sense nor do you maximize profits in an up trend by selling highs and buying lows. Again, in an up trend, your job is to buy right, add on the way up and just SIT.

If you want to swing trade it, thats fine, thats your objective and nothing wrong, it is what you are trying to do in the time frame to gather profits. HOWEVER, you will end up missing larger profits when the asset moves higher from that range and then awaiting the new range, which takes time.

You must, before deciding to buy an area that pull backs in an uptrend, know what ranges you are working with. What are you going to do when you buy a pull back of 40 dollars in gold, as an example and then proceeds to pull back even more by say an additional 50 dollars?

AS we have said before, you can buy dips in an uptrend, until it stops working. Up trends are very forgiving for a dip buyer and the up trend makes all buyers look great. But you must determine where is the appropriate place in terms of price. Just because it seems "reasonable" doesn't mean it wont go lower from where you bought.

The other caution about buying dips in an up trend is that there will be a time when the tone or character changes in regards to buying the dips. Sometimes, despite the uptrend, an asset might have some incredibly deep pull backs that previously had not occurred and causes some to speculate that the trend is over. Or other times the pull backs happen but the retracement back higher takes longer.

When or how that happens we do not know but something to be aware of.

some miners looking very soft today, many hitting LOD's as I casually glance.

On the flip side, some miners are making fresh 52 highs...

mixed market...

@ilikeikes

my experience in trading and following trends is that they run for years, for a while until they roll over and a new trend takes over.


I do think, as expressed to us by PRICE, and not of my own personal opinion, that gold and silver and other commodities will be running for a while. The other thing is that, again expressed by price. when a LONG term trend is snapped and a new comes in, this gets your attention. I say it again, breaking that FOUR YEAR DOWNTREND WAS A BIG DEAL. Capitals for emphasis.

Having been a trend follower/trader, I know from experince trends take their time before they stop. Along the way, a trend sometimes has fast moments, sometimes in between it acts erratic but continues on the same path, the path of least resistance.

Finally, when the trend changes, the tone and character is so noticeable and so many signs are given in price that one knows when its time to cut the cord.

As a side point, I feel that a lot of the general public is not rushing to gold and silver after being smashed on the last uptrend and coming in late. It wont be until we get to levels thought not possible that then everyone rushes in and then well, you can imagine what happens.

So while the die hard gold and silver bugs will always keep their fanatical viewpoint of gold and silver, the general public probably wants to no part of this rise for now after seeing how long the downtrend lasted.

So as I say, enjoy the uptrend. Chill out, if you are sitting on gold,silver, miners, enjoy it, let it do its thing, it on your hands and do nothing until it changes. If you missed out, wait patiently and there will be another area to properly enter.

I would say it's because the Brexit caused fear in the market, driving people into PMs prematurely in the uptrend. I expect the price will drop back to around the level it was just before the brexit vote, then resume it's upward climb in a more gradual increase, baring of course another event that will cause another panic run. Now of course I expect people that are in PMs and miners will panic when they see the price dropping and close their positions, causing the price to drop even lower than before brexit before buyers step in. I would welcome such an event as I'm waiting on the price to level out in silver and miners to increase my holdings of silver and get back into miners. I am new to this game, so am not speaking from experience, just basing my guess on human nature. This time when I buy my miners, I'm going to sit tight and have the stop loss set WAY low so I don't have my position sold out from underneath me. Just my 2 cents worth. Also, some of the major banks in Europe are in very bad shape from what I've read, bankrupt but hanging on by a thread. The banking system is a house of cards on a windy day. Anyone holding PMs and miners will be set once the first card falls.
Maybe Yup can expand upon my guess about your question though.
@Yup, you once recommended PAAS. Are you still favorable towards PAAS?

I would say the only people sweating the move today are the people who havent bought properly lol

There was absolutely no reason to be buying silver or gold the past week UNLESS you are/were working with a shorter time frame.

The gap down could be telling us more downside is ahead, as we did break the range lower and probabilities are high it continues to follow the break of the range, which is much lower going forward.

As I have said, if you bought when the trends started (back as February) and early from the start of the 52 high b/o, you are fine. If you havent bought at that time or you been trying to dip buy then naturally you are going to get hot under the collar.

Again, if you are a trend follower and you been buying properly, today should mean nothing to you. If tho you are constantly worrying about whether the trend is still here or concerned with a move lower from here, then thats telling me you are have no clue where/what you are doing.

oh well, whats that saying,, you lead a horse to water but you cant make it drink LOL

I've been quiet of late but I'm still paying attention.
Yup7676 or may I say "Sensei", thank you for your wisdom. You have saved me a great deal of money.
Respects.
Liverpool

so briefly....

gold and silver, longer term time frame,, are in an uptrend. they can pull back and STILL be in a up trend. They can pull back and have a violent move down and still be in an up trend. Get that in your head and repeat it over and over if you are out right now... which no one should ever freak out over financial assets.

We have silver breaking out of the range lower, with a gap down. So do not be surprised if the flood gates open up with selling for a while going forward. How low do we go? Who knows, we have several levels on the way down, be patient.


Same with gold, tho not so, for now, with many levels that it ran higher. Nevertheless, gap down and again, there are levels below so be patient.

One easy clue to figure out, on a shorter time frame the direction of any asset is what is the price saying day by day? Is it higher highs with higher lows or lower highs with lower lows? These add up and paint an overall picture that carries over to a longer time frame.

Also, remember that the market is always rotating money. one minute they might pause to sell, to buy, etc. I think the market is giving silver and gold a pause here, just based on what I am seeing in terms of whats up and whats down.

Finally, do not freak out, as I said earlier. If you are worried about the price dropping, chances are high you bought beyond the breakout point or bought the dip and thought it was coming back. I cant stress this enough: where you buy, in price, is so important because a proper entry in taking a position allows you to think clearly, you dont question yourself and you know what your risk is.

Just let the market do what it wants to do, do not fight the the market, dont try to make up reasons or look for reasons, just listen to price, follow price, become a student of price and you will be able to control yourself and profit from the market.

Finally, we are in earning season. If you find yourself still struggling to appreciate that the supreme instrument in markets is price action and still cant grasp the simplicity of price then at least pay attention to the gold and silver miners as they report in the coming weeks and months. You can easily google their stock symbol, find their reports, download their conference calls, even dig up a simple laymens "managements discussion" that is in plain english by going to sec.gov and putting in the stock symbol and pulling up their most recent ER as they file it.

If you are holding silver, gold miners or have an interest in some, this is your time to hear what the companies say AND to see HOW the market REACTS to what the miners say. Again, we can see this expressed by price. Miners that report good ERs will get price support from the market, those miners that are struggling with an increase of PMs will get spanked and kicked aside by the market at this time of the year. Some miners, might report crappy numbers, remember GOLD last quarter and then get a pass,, due to the strength of the uptrend.

so there you have it, just chill out. plus its summer time, you are going to see some really wild crazy moves mixed in with boring boring time period.