The pounding in Gold, Silver and Platinum continued Thursday creating a reversal to the short side for Gold and Silver. The action was fast, furious, and ugly. There were few rally attempts in metals which is a bigger concern.
We have now reversed Gold and Silver into this rally this morning. The signaled has reversed, now joining Platinum as shorts. Platinum we do not trade due to a lack of liquidity. 1800-1820 August Gold is resistance, our first target down is 1750. Silver’s resistance is 26.8-27 September, and first support is 25.5.
As I have written before, although I am now short the futures for Gold and Silver, I maintain my long investments in physical. We are believers in metals overtime as investments but is the short time frame we will be short.
Trading and investing are two separate investments.
Many have commented on the metals markets as being rigged, fixed, or manipulated. The possibility exists that all those things can be true however it does not matter; price action still rules the day and no matter what there must be a buyer and seller. Price discovery takes place in all markets, no matter what.
Patience, discipline, and money management always win the day.
Todd Horwitz Chief Strategist BubbaTrading.com
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