Betting Against Near Term Gold/Silver – Day Trading
Sep 25, 2008 Day Trading
Gold and silver have been a huge play over the last week or so with many stock in the industry rally 30-60% in that short period of time. But what goes up must come down. No significant profit taking has yet to take place in these stocks yet and it appears that they are nearing that calling as prices near heavy resistance levels and bearish candle patterns are coming into play. Looking at the gold and silver sector we can see price action failing to breakout at resistance. Wednesday failed to hold its rally and closed just barely up on the day suggesting weakness in the chart. With such a large rally its likely that we will see price retrace to a support level such as the 13/9 ema’s in the near term.
Day Trading Opportunities:
Looking at our first stock ??? we can see that price made a huge rally from the early 5′s and peaked today near heavy horizontal resistance around 9.50 also forming a bearish shooting star reversal candle suggesting downside movement from here. I think $8 or so should be in near sight for a short term day trade. i plan to go short Thursday with a tight upside stop.
Next stock were looking at is ???? which also made a magnificent rally over the past week yet looks like its glory days are coming close to a close. Price spike intraday on wednesday to tap out at its strong descending resitance trendline as we can see on the chart below while forming a very bearish shooting star candle suggesting negative momentum in the near term. We should also expect to see this stock head to support levels around the 13/9 ema’s around $6 or lower for a short term trade. I want to go short here near the open.
Tags: Day Trading, gold, silver
