The precious metals market continues to melt down, especially the stocks.
1st chart: Silver broke down from the bear flag that we have been showing for the last couple of weeks, the hope now is that this is a wave 5 of some sort and positive divergence will kick in.
2nd chart: However the second chart shows a longer term view of Silver, it's now at the bottom of a channel (see the black trendlines), and is nearing major support in the mid 26 area, it had better hold that major support because the next major support doesn't come in to about $20!
3rd chart: Shows a chart of gold, it continues to sell off and is not far away from the lower support channel.
The last chart: Shows a chart of the HUI gold bugs index, precious metal stocks have been the worst sector in the stock market; the HUI spent the last few weeks forming a bear flag 4th wave consolidation pattern which finally broke down hard to the downside. We have been warning you about the lack of impulsiveness in the gold stocks on the bounce, which meant that it was a corrective move i.e. 4th wave consolidation. Now the best we can hope for is for a 5th wave divergent low to manifest. The HUI has lost 36% of it's value since the Sept 2012 highs!
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