The Thanksgiving holiday is over, and the markets are in the home stretch of 2020. From a trader’s view there are three weeks left in the active trading year although there is almost six weeks until the calendar turns over to 2021.

One thing that remains constant, markets trade in the path of least resistance, in gold and silver that trend is down. This move began in the beginning of August and like a nightmare keeps getting worse. As we switch to February Futures in Gold the next major support level is 1750. Silver futures are now in March and have two major levels the first being 22.00 if that is violated Silver could see 20.00.

Besides our algorithm being short, Gold and Silver are likely to have a key reversal on a monthly chart indicating much more bearish conditions ahead. A key reversal is a trading pattern that may signal the reversal of a trend that is based on the high and low of any time frame you are watching. Gold and Silver both traded higher early in the month and look like they will close on the low.

The key reversal pattern is strong and indicates this downtrend is here to stay for a while. We remain short Gold and Silver while long Platinum. There is never a reason to fight the trend those who do typically end up compounding losses and out of markets when the pattern turns.

Todd Horwitz Chief Strategist
Stop being a prophet and make profits

Futures and Commodities with Andy Hecht and Technomental: Our webinar on Saturday was fantastic, here is the recording

2020-11-07 Techno Mental Futures and ETF Recording