All week we have been writing about the pain of congestion. Thursday was the tip off that, although consolidating the trend, is bullish. With Gold and Silver sitting in tight ranges and couple of things have developed – higher lows and solid bounces off support.
Silver is slightly more bullish than gold right now and has a chance to breakout to the upside today. If you look at a chart you can clearly see the big resistance level at 28.50. If Silver can break above, we could be off to the races.
Although gold is in a similar pattern and is making higher lows it also appears to be making a new resistance level at 1900. The same action applies to gold if it can break above 1900 gold can go a long way.
We remain long Gold and Silver, the trends are higher. Since we only trade the trend through our algorithms, we believe the rally and positive action will continue. We could be wrong but because we are correct 66% of the time we will stay long until the trend changes
Patience, discipline, and money management always win the day.
Todd Horwitz Chief Strategist BubbaTrading.com
Stop being a prophet and make profits
Here is an interview I did with Wall Street Silver last week. You will find it consistent with my writing and positions.
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