Silver Is Leading To The Downside

December 12, 2015

Markets were holding up for most of the week until Friday, when they finally cratered to the downside. While markets were holding up all week, I noted over and over again that stocks were not acting so great and were setting us up for a move lower, which came Friday.

Members and I are nicely in short positions and now looking for support areas to lock in our gains, which will likely come after the Fed news in the coming week.

As for metals, they tried to move higher but failed and then spent the week in the ranges I’ve shown here for the past two weekends…and now silver is taking the lead on the downside.

Gold lost 1.11% this past week after trying to breakout higher, but failed. So, gold is back in the range between $1,080 and $1,060 after another failed breakout. We’ve seen so many failed breakouts over the past few years -- and every single one prompts new articles of how gold has put in a bottom and is ready to rocket higher. Alas, it’s not yet to be.

I say it nearly every week and that is that gold needs to find its major support level at the $1,000 area before it can realistically be possible to have a major low in place. The $1,000 level isn’t far away now and can be reached within a day or two of weak trading. Indubitably, it has been a slow bleed lower that still hasn’t put the fear in the perma-bulls. The saying goes that we need to see blood in the streets for a low to be in -- and I haven’t seen a trickle yet.

The dominant trend remains down and the next likely move out of this flat base is down.

Silver lost a hefty 4.50% this past week after a failed breakout of the $14.40 to $14 range. This nice break is on increasing volume and still suggests the $10 area.

Silver is leading gold now…so look for gold to follow anytime now.

Platinum fell 4.43% this past week…but for now does remain in the range between $825 and $875.

Silver is leading…and if gold breaks lower, platinum will follow. Below, $760 is a major support level.

Palladium fell 3.85% this past week -- and is also on the cusp of further weakness if gold joins silver to the downside.

$500 is an important support level for palladium. And then under that we have to look to $400. Therefore, we could be in for a good sized discount in the weeks ahead.


Thank you very much for reading and you can find out more about what I do for members as we focus on leading stocks for the most part at

In my free, nearly weekly newsletter I include many links and charts which cannot always be viewed through sites which publish my work. If you are having difficulties viewing them please sign up in the right margin for free at or send an email to with “subscribe” as the subject and receive the newsletter directly in your inbox, links and all. If you would like to subscribe and see what my portfolio consists of please see here.

If you found this information useful, or informative please pass it on to your friends or family.

Free Service

The free weekly newsletter “Wizzen Trading” does not purport to be a financial recommendation service, nor do we profess to be a professional advisement service. Any action taken as a result of reading “Wizzen Trading” is solely the responsibility of the reader. We recommend seeking professional financial advice and performing your own due diligence before acting on any information received through “Wizzen Trading.”

During 1500s the Spaniards had taken 16,000,000 kilograms of silver from Peru.