Monday was a wild day for the metals, all spiked and looked headed to the moon. As often happens, out of nowhere there was a sudden reversal. Silver and Platinum managed to close higher on the day, but with marginal gains versus the monster gains they had seen early in the day. Gold reversed and got hammered reversing almost 50.00 from top to bottom.
Many will look at Monday’s action in metals as a bearish sign and possibly start to unload. When taking an unemotional view of the price action, July Silver is still breaking out and failed at 18.00 which was our first target. Silver looks great with solid support at 17.00, the next rally should blow through the 18.00 July futures levels.
Platinum, like Silver but has solid support at 850 July futures. Gold had the ugliest move of the day with a hard sell off, some will call the pattern a key reversal. However, from our point of view Gold closed on Support and should resume the rally in the next couple of days.
There was no damage done to the patterns in metals, the bias remains to the upside. At this point, the pullbacks which were expected are buying opportunities in a much bigger up move. Metals are mixed this morning and should consolidate for the next few days before resuming the rally.
Todd Horwitz Chief Strategist BubbaTrading.com
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