As we approach the final week of 2021, Gold remains in a struggle to reverse from the short side to long. Although Gold has broken through 1800, its inability to find a consistent rally will continue to keep us short the yellow metal.
At the same time Silver has found the levels to reverse and we are now long. Typically, precious metals will go in the same direction which adds to the market confusion. Platinum is on the same pattern as Silver and has reversed to the long side.
We have written many times about the phases of the markets; consolidation, which is where the metals are now, is the most challenging. The uncertainty of the consolidation pattern is enough to drive the average emotional trader to consistently make the wrong decision.
Eventually this pattern will end, Gold, Silver and Platinum will trend in one direction. We know that the future is higher, but the next day, week or month can go either way. Let the market and the chart guide you with patience and discipline.
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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