Monday was quite wild for gold, silver, and platinum, all three had broken down below support. What look like a massacre turned out to be a breakdown in silver with gold and platinum holding support with a late day rally.

Silver had the most amount of damage done on Monday, breaking down below support, opening significantly lower prices from here. This morning, silver is seeing the minor rally, though certainly not one big enough to reverse the breakdown. The silver price action now brings $22-$23 in play as the next major level for silver to hold.

On Monday, when gold started to sell off and quickly accelerated it appeared as if gold could be down over $100 an ounce. However, the major level of 1900 held after spending much time below. New support and resistance levels for gold are 1950 resistance 1875 support, based on December futures.

We remain short gold, silver, and platinum looking for the downtrend to continue. For now, we do not see a reversal to the long side coming anytime soon, expect selling to accelerate. However, remember that in major downtrends. There are monster rallies that make you second guess your position. As long as our algorithm stays short, we will stay short.

Todd Horwitz Chief Strategist
Stop being a prophet and make profits

We are now offering a comprehensive commodity report that complements our other services. The TechnoMental Commodity Report comes out on Wednesday evenings and provides comprehensive fundamental and technical coverage of most commodities that trade on the futures markets in the US and UK, as well as stocks, bonds, and digital currencies.  There is a summary report on Friday after the markets close, and robust quarterly reports on each of the six commodity sectors and a general overview that recaps the past three months and offers projections and suggestions for the next quarter. Andy Hecht, the author of the report, has been a commodity trader since the early 1980s and has vast experience in markets across all asset classes.

Sign up here: Bubba Trading TechnoMental Report