Monday was a solid day of gains for Gold, Silver and Platinum however none of them reached the key levels of resistance. The patterns are setting up nicely and we would consider step one completed.
For the rally to continue we must reach the levels of resistance which are Silver 25, Gold 1820 based on December futures, Platinum 1080 January futures. Obviously, that means they are higher continuing the uptrend. But until those levels are reached, we will trade with caution.
Based on the algorithm and the current trend tied with the price action we expect Gold, Silver and Platinum to reach those levels and then surpass them. The only question is when and will the uptrend hold. Our long-term perspective is higher but there could be a trend change before then. We remain long.
In all markets price action determines what will happen in the next day, week or months. Keep the two strategies separate, the worst trade anyone can make is turning a trade into an investment hoping for a way out. Traders must learn to take their losses and move on to the next trade.
Patience, discipline, and money management always win the day. Let the map of the markets show you the way.
Todd Horwitz Chief Strategist BubbaTrading.com
Stop being a prophet and make profits
On Saturday October 30th I will be presenting our part time futures day trading. I would love for you to join me. You can register for this free webinar below:
