On Wednesday, both gold and silver reached levels of resistance and failed as you might expect. The early morning rallies in both were very powerful and had the appearance as if they were going to break out even further to the upside. However, the sellers came in fast and furious taking both gold and silver from positive territory to negative.
Gold is ready to break out and should test $1800 August futures and higher with all-time new highs and insights. Silver failed to break out to the upside and is still in a consolidation pattern with the bias to the upside. This morning both are under some pressure, however both remain at support.
Platinum remains ugly and is breaking to the downside, the violation of major support the next target and platinum is about 760 October futures. A small rally in platinum over the next couple of days would be no surprise, however 840 should be resistance to any rally.
The patterns are all clear gold and silver are in options and should continue to rise. Selloffs should be used as an opportunity to buy. Platinum is headed lower and all rallies should be used as opportunities to sell. These patterns can change because we know markets don’t announce themselves, but for now we are long gold, silver and short platinum.
Todd Horwitz Chief Strategist BubbaTrading.com
Stop being a prophet and make profits
Saturday June 27th at Noon EDT Micro Mini Portfolio Management Webinar: I will be hosting a webinar on our Mini Micro Futures Portfolio Management. This program has been a huge success, you are invited to join the presentation at Saturday June 27th at Noon EDT. This is a can’t miss event and is free to attend.