Thursday’s rally in Gold and Silver is being met with sellers this morning. The precious metals should come under pressure with a strong downtrend. As markets churn waiting for the next big move there are certain levels that will be met.
The levels of support to watch in the precious metals are, Gold 1900, Silver 24.5, and Platinum 1000. Those levels will be key points when the selling intensifies and they should act as possible pivot points. Remember, we are long term bullish as investors but short as traders.
Price action in metals has turned bearish; we are sellers of rallies into resistance until the pattern reverses. All trading decisions should be made as unemotional as possible. Too many believe they know better than the price action and when wrong they claim foul. Success comes to those who understand markets.
Precious metals should be owned on a physical basis with capital that is not needed tomorrow or anytime soon. Trading should be done with paper knowing that we can trade either side without emotions.
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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