Monday saw a solid rally in Gold, Silver and Platinum, all reached a small level of resistance. Based on the current trend and price action they should reach their major resistance levels very soon. We cannot assign a date, but soon should be within the next week.
If/when the metals reach the next level the price action at that time will be important. Many are looking for an explosion higher, others believe that Gold should never go down. All markets tell a story at certain levels and leave a map, it is up to you to read it.
For those who want a bull market and higher prices to continue would hope that the next major resistance would slow the pace of the rally. The most powerful moves come from markets that obey “the rules of the road” and follow the phases. Consolidation at key levels usually lead to much bigger moves in the prevailing trend.
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.
Todd “Bubba” Horwitz