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How to Trade Gold, Silver, and Precious Metal Miners in This Still-Dicey Market


Precious metals may be close to a bottom, but there could be sharply lower prices still to come.


Silver Daily Technical Chart

Silver is in the same position as gold. The question is whether this is a shakeout or breakdown.

Gold Mining Stocks Daily Monthly Chart

Gold mining stocks broke down a couple months ago and continue to sell off. If precious metals continue to move lower, then mining stocks will continue their journey down. The chart below was made in February and it has, for the most part, played out as expected. While I do not try to pick bottoms (catch falling knives), I do like to watch for them so I am prepared for a new position when the time and chart become bullish.


In short, precious metals continue to be in a downtrend. While they look to be trying to bottom, it is important to remember that the largest moves take place in the last 10% of a trend. So we may be close to a bottom, but there could be sharply lower prices yet.

Editor's Note: Chris Vermeulen offers more content at his sites, and Traders Video Playbook.
No positions in stocks mentioned.

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