NEW YORK (TheStreet) -- Precious metals remained under pressure last week with little hope in sight as equities continue to advance.
Gold (GLD) dropped another 2.98% this week as it breaks major support with increasing volume. This is not a good sign.
It appears likely that gold will test lows back at the $1,180 level. New shorts are coming in as we break a major support level. Some would argue those short positions are a good sign. When gold strengthens, those shorts will have to cover, causing a pop. But that's not likely anytime soon.
Silver (SLV) lost some 3.12% for the week and is also accelerating lower on increasing volume. Silver remains in a solidly defined downtrend channel and is showing no real sign of stopping yet.
Silver is still leading gold lower, even though it did briefly flash a more bullish signal this past week -- which was quickly annulled.
A major support remains at $18. We would see a ton of selling at that level, as that's where many people got in. People will not let silver show them a loss, so expect a flood of physical silver onto the market shortly.
We need that, a so-called "blood in the streets" moment, and a break below $18 would bring that on.
Platinum (PPLT) was smashed, falling every day this past week to end down 2.9% on balance. This white metal has no chance at all with gold and silver so weak.
The $1,320 area is the next major support level to look for if $1,350 can't hold -- and I see no reason why it would hold. Under that, $1,200 is the next major support level, and that is a very likely target to be hit before all is said and done. Look at the strong and increasing volume pushing it lower. That is a strong indicator the current direction will continue.
The triple top I talked about last weekend came to fruition a bit earlier than I'd thought, but the huge increase in volume and push below the 50-day moving average confirmed the triple top was in.
The next major support level is $800, with $840 now acting as major resistance.
We could see a pop back to $850, but that should be short-lived.
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At the time of publications, the author had no positions in any of the investments mentioned.
This article is by an outside contributor separate from TheStreet's news coverage.