Here we are once again at a decision point for Gold, Silver and Platinum. The price action suggests a big move is coming, the direction is the only question. The pattern of consolidation will lead to a breakout to the upside or continuation of the down trend.
We have been short for months and have reached the crossroads. As of today, we remain short but will not add to current short positions. Using our mechanical trading algorithms will tell us when to reverse however we recognize the current pattern and will sit tight with current positions.
Congestion is always the greatest time of uncertainty as the bulls and bears fight for control. The current battle in Gold is between 1700 -1750 and whichever side it breaks to will dictate the trend. Silver is stuck between 24.5 – 25.5, the same applies here.
When trading mechanically you leave all opinions and emotions out of your trading letting the price action tell the story. We continue to buy physical metals in all knowing that short term moves have no bearing on our long-term view.