E Metals And Miners Are Setup For Another Decline

Gold prices reached a high of $1,273.40 in early trading but then dropped back to support at $1,265. A daily close below $1,265 will suggest a top.

Silver reached a high of $17.47 and likely fulfilled a measured ABC correction objective. Prices are near resistance, and the structure could begin to rollover.

Miners closed at or near the lows of the day and the potential for a breakdown exists. The setup is there; now we need to see if the bears can follow through.

-US DOLLAR- The 10-day EMA rejected prices, and a bottom is still unconfirmed. I’d like to see a daily close above 97.75.

-GOLD- Gold prices tend to top within 2-4 days after they surge above a congestion zone. A daily close back below the breakout point indicates a top. In this case, we require a close below $1,265. Prices came close today settling at $1,265.70. Closing below $1,261.80 will from a swing high.

-SILVER- Prices reached a measured ABC correction objective off the $16.06 low. This in a logical area for prices to turn lower…if they are ready.

-GDX- Prices closed at the lows of the day, and I see the potential for a breakdown. The setup is there; now we have to see if the structure follows through.

-GDXJ- Junior miners are also setup to move lower.

-DUST- The potential for a rally endures as long as prices remain above the trendline.

-JDST- Prices made a new closing high off the $64.31 low. Maintaining the trendline is vital.

-SPY- Prices are taking a breather after breaking out. The target of 246+ remains as long as prices don’t close consecutively below the 10-day EMA.

-WTIC- Prices were unable to close above the 10-day EMA. We could see the downtrend resume tomorrow or Thursday if prices fail to close back above the $50.00 level.

-XLE- Prices made a new closing low implying lower crude prices.

If gold fails to maintain the $1,265 price level a top is likely. Closing back below $1,261.80 will form a swing high and invalidate last week’s bullish pennant breakout.

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