It's been a while since our last post on precious metals. The price action right now seems to be offering a decent opportunity for a trade here.
Silver:
The last post on silver was on Sept 16th when Silver was around $40 and expected a decline to $26. We are labelling that as part of the third wave and the move off that low has been a struggle and it seems like a corrective pattern and hence labelling as corrective 4. If this is correct, Silver should see a drop to atleast 28.8, if not a new low to 24.5. So a high above the 28th October high would negate this view and should be used as a stop.
Gold:
The technical position for Gold is slightly different but direction is the same.
A move above the Oct 28th high would negate the bearish view but Gold is expected to trend lower to 1605 or 1513. A stop above 1755 is a must.
While I'm confident about these setup, the internal sub-divisions on these PM's is not ideal but I like the Dollar Index's internal sub-divisons. So I guess this should make for a neat trade.
18 Responses to “Precious Metals update”
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Hello Jai,
Since USD index internal sub-divisions are in decent shape, can it be assumed that INR will continue to depreciate as well ? Intermarket relationships should hold, but just wanted to confirm. Thanks in advance
Yes Girish,
I have not changed my view on the INR.
Best regards,
Jai
The publishing time of the report 8:04 GMT. The first big down bar started at 8:05 GMT. Silver down 4.4% and Gold down to 1687.
Hope you guys acted on it.
Cheers,
Jai
Did. Did on Metals 🙂
But couldnt close UB 🙁
Jai,
BTW. Not closed the metals short. Holding on.
Regards
You will get more or less the same price tomorrow on UB around 843.
Jai,
I was keen to understand the stop on Silver. As you know its again on the rise now ?
Regards Amrish
It was the point of exhaustion of the swing move and it is above the 50% Fib level of Aug/Sep decline and just 61.8% fibonacci level of Sep decline.
Cheers,
Jai
Jai,
Sorry. Just to clarify. I was basically asking for the exact price point please.
Regards
35.7 for Silver and 1755 for Gold
Ok. Hanging in there….Cheers
Sir in rupee terms, i have taken the stop loss of 58,000 which was the high which silver made on 28th July..
i meant 28th October
Perfect.
A clarification here pls:
Wouldn’t the rupee rate be dependent on the USDINR at that point of time? Basically at any point in time?
Got stopped out on Gold. That hurt too…
Dear Jai,
Gold trading above 1755.Is the stop on close?
Regards
Rahul
Yep got stopped on Gold