The selling continues in gold, silver, and platinum, as markets search for a bottom. There is never an absolute level to how low or how high a market can go; all we can do is set levels of support and resistance as guidelines.
Levels we watch are determined by price and volume at certain points in any chart. In the case of gold, silver, and platinum levels of support and resistance are clear. However, that does not guarantee that they will hold. Remember they are only used as guidelines as we manage our positions either long or short.
We remain short gold, silver, and platinum expecting to see much lower prices before the next rally begins. In the short time-frame 1850 December gold could be support, however the chart indicates that 1800 is in play. Silver, first support should be $22.5 but 22 is in play. Platinum has held its first test at 830 January futures but our target is 800.
Our positions have not changed. We are short the metals across the board expecting lower prices. Remember, there is no guarantee that will not change any day. However, that is the game plan as of today. Trading is preparation and a plan with mechanical answers decision-making.
Todd Horwitz Chief Strategist BubbaTrading.com
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