All big moves in either direction eventually come to and end. Is the metals rally over? Some will immediately say yes, others will say no. What is the real answer and how does a trader or investor identify if it is?
Of course there is no real answer today and we will remain long through today at least. However, the run has been spectacular and will reverse at some point. If Gold and Silver closed at their current levels, we would probably be reversing tomorrow.
The real answer is to watch the price action and understand what the footprints are telling us. A sell off is certainly due, markets don’t go in one direction without pullbacks or corrections. The price action today is at a point it could go either way. Today is a day for observation, waiting for the clues that price is telling us.
We will hold our long trades in gold, silver and platinum at least for the next 24 hours, but will not use this sell off to add. This a time for patience and discipline, knowing trouble could be brewing.
Todd Horwitz Chief Strategist BubbaTrading.com
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