All markets move under the same types of circumstances, they trend, consolidate and blow off. Watching the metals over the last few days they are in the consolidation phase. This is common considering markets spend about 65% of the time in this phase.

The trend is higher for Gold, Silver and Platinum, the fact that they are struggling to breakout to the next level coincides with common action before the next big move.  Our expectations are Gold Silver and Platinum will breakout to the upside continuing the longer-term trend.

However, it is important to remember that patterns last until they don’t, and expectations are not fact, but an assumption based on other information. Since we only trade and follow our own proprietary algorithm, we show the trend higher expecting a breakout to the upside.

One key level to watch this week is the year end price of gold. A close above the 1890 level would be the 9th quarter in a row. The last time we saw a similar more preceded all-time highs in gold. 2021 could show big gains for Gold, Silver and Platinum as long as the current trends stay in place. The next few days look like we will see more consolidation before the up leg begins.

Todd Horwitz Chief Strategist BubbaTrading.com
Stop being a prophet and make profits


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