Another day, another mixed day in the metals. Gold and Silver appear stuck in quick sand as buyers don’t have enough power to push them up and the bears don’t have enough to push them down. This is known as congestion and can last for an extended period. At the same time, Platinum appears to have found a bottom.
Looking at Gold this morning at 5:15 am EDT we see higher prices. At the same time Silver is lower. Both must break above key levels which are 1780 December Gold and 23 December Silver. Until there is a close above those levels, gold and silver will be in a downtrend.
We all know that there will be a time and place when Gold and Silver take off to the upside. When Gold was 300, people thought it would never go up; after failing in 2011 the same thoughts appeared. When Silver was 5.00 it was under pressure and so on. These markets will go higher eventually, however they are trending lower until they don’t. The right side for a trader is the short side.
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.