Trend-Following 101 says figure out if a market is trending higher or lower ... then evaluate how strong the trend is.
Metals, as a whole, are giving a pretty strong bearish signal.
We use the Trend Level indicator to quantify the true power behind the trends demonstrated by individual markets.
In general, Trend Level (TL) Level scores fall into three zones:
- Bullish trending markets have scores greater than +5;
- Bearish trending markets have scores less than -5; and
- Neutral markets hover between +5 and -5.
Based on those standards, all six Metal markets are trending lower.
Obviously, Gold is leading the bearish pack downwards. Traders may note that Gold has support at 1472.90 (with more support at 1382.92). Its most recent close was 1501.40.