Gold and silver are under pressure this morning which is really no surprise after the recent rally. Both appear to be in the consolidation phase setting up the next move. This phase is very common in all markets as they prepare to continue their current trends.
We expect the rally in gold and silver to resume after a couple of days or weeks of consolidation. The keys to watch for support are gold 1760 -1780 August futures, silver $18 -18.25. Based on the action those levels should hold and we should see a continuation of the rally. We expect gold to make a run at the highs and silver to go to 20.
Platinum is basically flat this morning still in a downtrend which should take platinum below 800 October futures. The trends are solid and the metals continued to trend with the long term outlook of gold and silver higher platinum lower.
Obviously in markets there are never any guarantees, all we can use is the history of the trade which helps us determine the probability of the future. We are playing a probability model with a win rate of 66%, there is no reason that should not continue. We will remain long gold, silver, and short platinum.
Todd Horwitz Chief Strategist BubbaTrading.com
Stop being a prophet and make profits
Saturday Micro Mini Recording: Saturday did a great webinar on our micro mini futures portfolio models. I have attached the recording for your viewing pleasure.