As our current long-term positions are in good profit, one may ask to close the position and take the entire profit out of the table but just as a loss on a position is not a reason to close it, a big profit isn't too. Remember-The market simply doesn’t care about any one individual’s loss or profit and will not use it as a factor in determining the next move.
Those who believe we are long-term gold bears just keep in mind we are working on the report of how gold could soar once it finally bottoms, the numbers may surprise you, anyways we will keep you updated regarding this biggest turnaround.
Gold , silver and mining stocks declined in a significant manner within days and our long-term position is already running with a sizable profit. That was the first time we had increased the size of our position by up to 250% that we had never increased it to before. we saw the enormous sizes of decline, especially in silver and mining stocks. The HUi Index broke below 2008 like it never existed but the silver stopped at around July 2017 intraday low, So does it mean we are going to see a huge rally in silver prices from this point?
The answer really depends on how you define a rally. If a 40-50 cent move or so defines a case of a rally for you then yes, this might be true, for us, it doesn't seem that we witnessed anything that would justify changing our current short positions.
Gold already broke below the March 2017 low and there is no important support all the way down to 2016 bottom. with taking intraday prices into account late January 2017 bottom worked as a support yesterday but in terms of daily closing prices gold closed below that, we didn't saw the lowest close like we witnessed yesterday since January, so we also saw a breakdown. we don't expect the late-January bottom to generate any sizable rally, Instead, we think gold will plunge to December 2016 bottom which is more likely compared to yellow metals breaking below the December 2015 bottom(still possible). overall our previous comments on yellow metal is still up-to-date.
Silver-From the shorter point of view, we saw the sizable decline in white metal and than it stopped the decline at July 2017 bottom. It seems very from the short-term perspective but these are very short term signals without having many confirmations so we shouldn't focus on the very short-term signals.
The conclusion-our outlook for Gold -0.07% -1.31% 0.05% , Silver -0.88% 0.28% -0.53% and mining stocks is very for the medium and long-term, and it seems gold -0.07% -1.31% 0.05% is likely to plunge more within next 2.5 weeks and it seems $1130 target is very much likely to reach but it may even drop to $1060.We may touch a local bottom later this month, though and we’ll keep you informed regarding the possibility of seeing a bigger turnaround.
more likely scenario- we’ll see some kind of local bottom with gold -0.07% -1.31% at $1,125 - $1,130 or so. This week’s declines shows that the slide has already begun
we will keep you informed anyway
many regards-Neeraj Pandey
Our existing positions
Sell Limit Price: 15.500
Take Profit: 12.80
Stop Loss: 15.600
Sell limit Price: 1231
Take Profit: 1080
Stop Loss: 1221
( It doesn’t, however, mean that we won’t adjust (limit, close or even reverse) the position before this price level is reached. If we get enough confirmations other than gold’s price level itself (for instance, mining stocks show strength and silver -0.88% 0.28% -0.53% 0.13% -0.13% -0.06% -0.26% -0.19% -0.06% reaches a very important , while the USD reaches a key resistance), then we might do it, just like we’ve done previously (which ultimately caused the short position to be more profitable).