Gold and Silver have been showing some strengths this week with some positive trading action with indications that the bottoms could be in. However, Wednesday’s action in the metals was more bearish indicating that this recent trade is still bearish.
Markets take many turns throughout the different patterns, many of them are false. We could be witnessing a false move now as we watch the possible fake out of the bottoms being in. Tuesday and Wednesday’s trading action was weak, indicating that we are seeing a false read and the trend remains lower.
One thing about trading we must always remember, throughout all of the market gyrations, the longer-term trend trumps everything until it changes. Early in the week it appeared that the trend was changing, however for now we are short and have no intentions of reversing until there is proof that the lows are in.