One of the key components in trading is the price action surrounding any asset class. In the class of the metals there are many interesting things starting to show. After Monday’s crazy action, Gold, Silver and Platinum have traded inside of the range created indicating a much bigger move is headed our way.
Since we use our proprietary algorithm to make trades, we will always defer to the long-term trend. Looking at the recent price action Monday’s 53.00 range in Gold is out first guide we see a solid low in place with higher lows on Tuesday and Wednesday. Of course, that guarantees nothing but a baseline to watch. Silver and Platinum are in similar patterns.
Evaluating the Price action, with the algorithm and last few days of trade, our conclusion is a big up move has a higher probability than a down move. You must always remember that we could change after any given day’s price action and close. All algorithm signals are decided after the close every day.
We are bullish, Gold Silver and Platinum as we look for a much bigger move higher based on what we see now. The key level to watch is 1860 December Gold, 25.20 March Silver and 1000 January Platinum. Violation and a close below those levels could change our overall views.
Merry Christmas to All
Todd Horwitz Chief Strategist BubbaTrading.com
Stop being a prophet and make profits
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