Overnight and this morning Gold and Silver are under pressure with Silver breaking through the key 25.00 level trading 24.80 as of 4:20 EST. We will now assume the 24.00 level is in play which was the low in mid-January.

There are no guarantees that the breakdown will continue, however the pattern is the most bearish since last November. Gold looks to be headed lower as well; break below 1700 brings 1600 into play. As Silver breaks through major support, Gold is not far behind.

When trading, it is important to remember that the patterns we trade can change at any time. As of today, there are no signs that these bearish patterns will change any time soon. However, we are prepared for everything knowing trends change.

What makes these patterns more bearish, with the FED printing money at a record pace, gold remains negative. Add the FED’s unwillingness to say there is inflation and you have a recipe for higher Gold and Silver prices. Yet they are not, makes you wonder…

Todd Horwitz Chief Strategist BubbaTrading.com
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