HUI Index meltdown

FX_IDC:XAUUSD   Gold Spot / U.S. Dollar
At the moment of writing this alert our full 200% net short position in gold , silver and mining stocks are well justified from the risk and reward perspective.
Yesterday we wrote about the invalidation of the HUI Index below the key fib level and also discussed that really seems very insignificant from this point or may even be over. We saw a huge decline in the HUI Index where it broke below our mentioned support.
The reason of Big slide which we saw in the HUI Index was mostly due to one company-New Gold as there Q2 earning report was extremely bad and bad news regarding there new river project.
, We witnessed the HUI index plunged yesterday and closed below the 61.8% Fib retracement, from here the breakdown is clearly verified and the implications are very bearish .

Breakdown of silver stocks-Silver stocks already verified the breakdown below the November 2016, December 2017, February 2018 and June 2018. we cannot see any strong support till 2016 low, Believe it or not, This is like a dream come true factors for our silver short position, whether it sounds crazy but that's what silver stocks chart is suggesting us,

GDX confirmation and platinum breakdown-The implication is bearish as the GDX ETF verified it's breakdown below the Feb low and we think there is much more room to go lower from this point whereas platinum slide has been a mystery since it started,platinum breakdown is still not confirmed yet as on a short-term basis we saw a small reversal in the metal,at the moment of writing this alert platinum is trading around $830,The odds are that we will see the full breakdown soon and without being biased to our short position we think the implication for the less popular metal is bearish anyway
The conclusion-our outlook for precious metals is very bearish for the medium and long-term, we will keep you informed anyway,
many regards-Neeraj Pandey

Our existing positions

Sell Limit Price: 15.500

Take Profit: 14.42

Stop Loss: 15.700


Sell limit Price: 1231

Take Profit: 1142

Stop Loss: 1275
( 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 -0.19% -0.06% reaches a very important support level , 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).


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