Silver Breaks Previous Support as Gold Retests Prior Double-top

What’s inside:
• Silver furthers weakness on channel break below confluence of support
• Gold treading precariously around April/June double-top, August consolidation period
• Key levels and considerations outlined for both precious metals

The break below the lower parallel was our initial cue that more selling was on the way, but an immediate point of hesitation came in with regard to shorts as a significant level of support was met immediately upon the breakdown. The area just above 17 has confluence through horizontal price support, the 200-day MA, and a retest of the July 2016 trend-line. It was nearly cracked on Wednesday with the help of a hawkish Fed, but it was yesterday where we got a solid closing print below noted support. (Support now becomes resistance.) This opens up a path towards 16.71, 16.56, and 16.09 in the near-term. The most latter level may be aggressive for short-term positions, but if gold gains momentum below 1290 it may be seen sooner rather than later.

Silver: Daily

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