Gold Price Breaks Down, Waving Good-bye to the 2019 Rally / Commodities / Gold & Silver 2019

Oursummary of the current situation in the precious metals is not going to differmuch from whatwe wrote yesterday, and the reason is simple. The decline in gold,silver, and miners is developing justas we’ve been expecting it to. Most importantly, gold has justconfirmed its breakdown and everything that we reportedon gold’s outlook and price targets just got a huge confirmation.

Let’stake a look at what gold, silver, and miningstocks did in the last couple of days.

TheRecent Days in PMs

Goldbroke below the lowest closing price of September and it just verified thisbreakdown by closing below it for three consecutive trading days, and thatincludes the weekly close too. That’s a clear way for gold to say that arelatively broad top has been formed and that lower prices are going to follow.

Silverbroke not only below its September low, but also below its rising red supportline and the 50% Fibonacci retracement level. Technically, silver’sbreakdown was even more important than the one in gold. The fact that the white metalmanaged to close the week below the combination of three support levels isbearish, but it will become much more so only after it’s verified.

That’sone way to do it, and if anyone wants to take this route – sure, it’s theircapital. We think that having a position open right now is better from the riskto reward point of view because of the confirmed breakdown in gold, and becauseof multiple signs that we have covered in our previousanalyses,and that we can’t discuss on each day – there’s simply not enough space andtime to again go through all the bearish factors that remain in place rightnow.

Itis usually the case that three consecutive closes below a certain level arenecessary for the market to verify the breakdown, but given how stronglycorrelated gold and silver are, the odds are that a slide ingold will trigger a powerful slide in silver as well. And gold’s plunge couldstart any day, hour, or minute.

That’strue, but it’s also true that they did the very same thing just several daysago, during the previous pause. On November 5th and 6th,miners moved higher on an intraday basis even though gold rallied only once inintraday terms. Moreover, November 5th – the first of the small,two-day, corrective upswing - was the day when the HUI opened lower but thenmoved up during the day. That’s exactly what happened on Friday – the first dayof the current, two-day, corrective upswing.

Giventhe above similarity and the very bearish follow-up that we saw on November 7th(big plunge across the precious metals’ board), it’s hard to view miners’performance as bullish. Besides, if the miners are really showing strength hereand the decline in gold and silver continues today, then the former will easilyrepeat their supposedly bullish signal, indicating a local bottom. At thistime, such a scenario seems doubtful.

Thegold market has been declining just as we expected it to and it’s likely todecline some more before we see a bigger turnaround. Knowing when to exit ashort position and when to enter a long one is the essential part of makingmoney on this move. They say that the universe does not reward one for whatthey know, but for what they do with it. The clear price targets andprofit-take details for gold, silver, and miners included in the full versionof today’s analysis – our Gold & Silver Trading Alert – are the actionablepart that savvy traders really should take into account right now.

Today'sarticle is a small sample of what our subscribers enjoy regularly. They knowabout both the market changes and our trading position changes exactly whenthey happen. Apart from the gold-USD Index implications, we've also shared withthem which side of the argument Dr. Copper (the metal with PhD. in economics) isat. We encourage you to sign up for our daily newsletter, too - it's free andif you don't like it, you can unsubscribe with just 2 clicks. If you sign uptoday, you'll also get 7 days of free access to our premium daily Gold &Silver Trading Alerts to get a taste of all our care. Sign up for the free newslettertoday!

Thank you.
PrzemyslawRadomski, CFA
Editor-in-chief,Gold & Silver Fund Manager
Sunshine Profits - Effective Investments through Diligence and Care

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All essays, research and information found above represent analyses andopinions of Przemyslaw Radomski, CFA and Sunshine Profits' associates only. Assuch, it may prove wrong and be a subject to change without notice. Opinionsand analyses were based on data available to authors of respective essays atthe time of writing. Although the information provided above is based oncareful research and sources that are believed to be accurate, PrzemyslawRadomski, CFA and his associates do not guarantee the accuracy or thoroughnessof the data or information reported. The opinions published above are neitheran offer nor a recommendation to purchase or sell any securities. Mr. Radomskiis not a Registered Securities Advisor. By reading Przemyslaw Radomski's, CFAreports you fully agree that he will not be held responsible or liable for anydecisions you make regarding any information provided in these reports.Investing, trading and speculation in any financial markets may involve highrisk of loss. Przemyslaw Radomski, CFA, Sunshine Profits' employees andaffiliates as well as members of their families may have a short or longposition in any securities, including those mentioned in any of the reports oressays, and may make additional purchases and/or sales of those securitieswithout notice.

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