Gold and Silver can’t seem to gain any footing as they continue to struggle in the current consolidation pattern. The battle between the bulls and the bears at the 1760-1800 level in Gold and 2180-2240 Silver has the appearance that the bears are going to take control once again.
The metals look ready for a meltdown; it would be no surprise to see gold trade 1700, Silver 21 and Platinum 900. For now, the metals look bad and the sellers are ready to take charge. Obviously, these patterns can change without notice, but the action is ugly.
You must remember, we are long term bulls, but we are trading the price action today. If you can separate the two emotions, you can benefit from both sides. We remain short and willing to sell more paper gold at resistance levels.
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
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