The metals continue to explode as if they are never going down again. We know that at some point they will reverse trend and go lower. Furthermore, as this rally continues there will be some nasty sell offs from time to time. We are long Gold, Silver, and platinum (reversed yesterday morning), and have no expectations of reversing anytime soon.
Remember markets never announce themselves and they can reverse at any time. The parabolic move suggests there is a pull back coming in the next day or two, however until the trend changes, we will add on support. Be ready for some selling pressure, but do not get fooled, the trend is higher until it’s not.
Gold has blown out all resistance levels, the next true resistance will be the all-time highs. Silver is nowhere near its all-time highs, however the next resistance is 25.00 September futures. Platinum, which finally broke out and reversed trend on Tuesday, first resistance is 1000 October futures.
Even though the patterns are as bullish as they can be, don’t get lazy or emotional on big movement. Metals are going up until they don’t. We are buyers on support only until the trend changes.
Todd Horwitz Chief Strategist BubbaTrading.com
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