For weeks, Gold and Silver have been under pressure. Even when it looks like they are going to turn around the sellers show up. Wednesday Gold and Silver were higher early only to fail again. As we have written for weeks, sell all rallies until proven wrong.
This morning Gold is lower, Platinum and Silver are slightly higher. Probability tells us that the sellers will show up across the board and the metals will continue to experience pressure. Some day the trend will change, and we will be talking about moves higher, but that is not today.
There will be some sharp rallies through this downtrend, but lower levels will be tested. Look for 1720 February Gold, 890 January Platinum and 2140 March Silver. These lower prices are an opportunity to buy physical metals but as traders we are sellers.
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 Horwitz Chief Strategist BubbaTrading.com
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