On Thursday we had a nice rally in Gold, Silver and Platinum which took Gold through 1900, Silver to 24 and Platinum to 1100. We could not have scripted a better move including the small sell off this morning which is bullish.
Today’s lower open is an opportunity to buy, we must remember in an uptrend we look for support levels to buy. The fast that markets failed at resistance makes these markets more powerful for the up move.
The next key levels to watch are Gold a close above 1910, Silver a close above 24 and Platinum above 1100. Based on the speed of the rise we could see some congestion here as these markets look to take off to higher highs.
Gold has an opportunity to sell all time new highs while Silver could see 26 and Platinum 1200. Remember the metals are an uptrend, look for support levels to buy, don’t chase them up, there will be retracements.
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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