Tuesday Gold Report

-SILVER- The price action in silver can be viewed as a possible bear flag. Breaking below the $14.45 level could trigger another down leg. To reverse the bearish potential, silver needs to close above $15.00.

-GDX- Miners completed bearish engulfing patterns. Underwater longs rushed to exit after the morning gap failed. Downside follow-through tomorrow and closing below $18.80 will validate today’s bearish reversal. However, it would take a close below the short-term blue trendline to prescribe new lows. If prices fail to follow-through lower tomorrow and Thursday, then today’s bearish pattern will be invalidated, and I’ll remove my hedge. I don’t necessarily believe today’s price action, but it would have been unwise to dismiss the bearish reversal.

-GDXJ- I’m sure the bears are thrilled about today’s massive reversal in miners. It will give them the confidence they need to add new shorts. If metals and miners truly bottomed, then we should not see significant downside follow-through tomorrow or Thursday. Invalidating and closing above today’s highs would indicate a primary trend change and overconfident shorts will get crushed.

-JNUG- Decisive closes below $8.00 would suggest the bears are still in control. If prices stabilize and close back above $8.75, I’ll remove my JDST hedge.

-USLV- If prices stabilize and close above $7.00, I’ll remove my DSLV hedge.

-COMPQ- The Nasdaq composite gapped through resistance at 7950 and rallied above 8000. It looks like we have another short-term breakout. Closing below the 7950 gap at any point would indicate a correction (possibly sharp).

-WTIC- The next 39-41 day turning point arrives between September 12th & 14th. If prices are making a high at the time, it could signal a good shorting opportunity. A top between $72.00 – $73.00 would build the case for a head and shoulder topping formation.

-GBTC- I think Bitcoin and the Bitcoin trust (GBTC) are in a descending triangle consolidation after the initial post-bubble collapse. Prices continue to make lower highs. If the current rally reaches the trendline between $10.50 – $11.00 I’ll consider shorting GBTC expecting a breakdown and potential collapse below $8.00 later this year.

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Disclosure: None.

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