Last week was an interesting one for the metals. The bottoms held, the trend reversed and from looking bad they now look great. Forget about the news, the price action and charts show bullish information. What we have see for the past 6-7 days are higher highs and higher lows which indicate the rally should continue.
Looking back to Friday, Gold and Silver looked prepared for blastoff. Of course, Jerome Powell stepped into the pile and metals quickly reversed while higher on the day well off the earlier highs. One can interpret the news any way they want but the price tells all.
As we look ahead Gold and Silver appear to be ready to run higher. The next levels to watch are Silver 25, Gold 1820 based on December futures, Platinum 1080 January futures. Those should be the next levels of resistance before pushing higher. Remember, there is no guaranty but for now the metals look like they will run higher.
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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