Gold is under pressure this morning and in danger of breaking a key support level. It appears that the big seller is still there as we saw on Monday with just the electronic market trading. We are long and expect a bounce from here, however we know that the pattern and the algorithm can change.
Silver and Platinum have become more bullish based on the price action than Gold. We are long all three, but know that they can also separate and go in opposite directions. Platinum and Silver held key support last week and continue to move higher. We expect Silver to test 18.00 July futures and Platinum 950 July futures.
The bottom line remains the same, the metals look strong, although they have rotated to key supported levels only to bounce and run to new highs. This is the power of price action which eliminates emotions, it keeps you in a position longer without guessing but with more of a mathematical certainty. We know there are no guarantees, but its always better to be on the right side of the market.
Todd Horwitz Chief Strategist BubbaTrading.com
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