As expected, Gold, Silver and Platinum are pulling back from resistance levels. All three reached the first resistance levels on Tuesday which is causing a natural pullback that is healthy for the market setting up a bigger rally.
Strong healthy markets don’t go straight up, they walk up the stairs. The slower the walk the more powerful the rally not only in price but in duration. Typically spikes straight up are met with sellers and are usually caused by a short squeeze, not real buyers.
Gold, Silver and Platinum appear to be attracting real buyers not short covering. If you look at the chart and the price action you are looking at a map of the market. The map will guide you to the correct side of the market; the trend is up and we are long.
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.