Tuesday was a wild day for Gold, trading up to 1786 before failing and closing at 1769.4. The rally did fail however Gold managed to put in a higher low. This type of action leads to bullish action. The key support of 1760 must hold to continue bullish while a break above 1800 could create a big up move.
Silver was much stronger than Gold but failed to hold above 24.00. At 5:00 am EST Silver is at 24 and could break to the upside creating bullish action which should lead to higher prices. This is a critical period for Silver, we remain long with uptrends in Gold and Silver.
The price action will determine the next move but there are many signs pointing to a big rally. Remember, to project out past the next level is a fool’s game. Markets climb the stairs higher, metals must break above the current resistance levels to go to the next.
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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