Monday gold and silver started out like it was about to be a great day and a big continuation of the recent rally. However, a funny thing happened on the way to the finish, gold and silver fell apart late, although closing higher on the day the action was ugly.
Gold is softer this morning, but the overall pattern is still extremely bullish but now we must watch the 1780 to 1800 level in August futures. We expect to see some consolidation the next couple of days if we hold these levels, we look for a bigger run to probably 1850 August futures.
Silver’s action was like that in gold, however, September silver futures held up better than gold. Silver is lower this morning but in an extremely bullish formation and should make a run over $20 September futures. Silver is in a potential cup and handle formation which is one of the most bullish trades there is. We expect the rally to continue, but as always there will be bumps in the road.
Platinum continues to fail at resistance and looks to be headed much lower once again. As with all markets, they never announce themselves and the patterns we are watching now can change at any time. For now, we are long silver, long gold, and short platinum.
Todd Horwitz Chief Strategist BubbaTrading.com
Stop being a prophet and make profits
Saturday Micro Mini Recording: Saturday did a great webinar on our micro mini futures portfolio models. I have attached the recording for your viewing pleasure.