As much as many believe that Gold, Silver and Platinum are buys, there is one simple thing to understand: the trend in metals is lower until proven otherwise. There is one simple fact since peaking in August, the trend has been lower. Remember that trends are valid until they are not, currently the trend is lower.
As witnessed late last week, early this week, Gold, Silver and Platinum reached resistance and failed. Their next step will be a test of support. At support, the metals will do one of two things, either bounce and rally back to resistance or breakdown continuing the downtrend.
As mechanical traders we watch the trend and never react to short term volatility. Emotions have no place in the trading or investing world, they are always wrong and miss the most important step in trading: logic. We trade only facts, not news or emotion. Markets price in events long before they happen.
Price action dictates what to expect next, in the current pattern on consolidation, our expectations are a breakdown through support continuing the current trend. Our trades will not always be correct but will always be based in math, logic, and patterns. Follow the rules without emotion and learn to win.