Gold and Silver try to break out: FAILURE
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Gold and Silver attempted to break out of consolidation on Wednesday and failed. Around 9:40 EDT, Gold, Silver and Platinum started to run higher and looked like they would break to the upside. By day end, Gold and Silver were on their lows of the day.
This once again proves that the trend is your friend, which increases your probability of making money trading. As we have clearly warned, there are no guarantees that we will be right on the next move; however, knowing the win rate helps you manage your trades.
For now, consolidation is the pattern, and the current trend is lower. This will keep us, sellers, probably with a more aggressive attitude. Wednesday's failure indicates there is more underlying weakness.
Although Wednesday showed a spike rally early, the failure tells us we should be sellers at $1,800 August Gold and $26.5 September Silver. We believe that precious metals will go higher in the future, but selling or observing are the only two choices under the current pattern.
Patience, discipline, and money management always win the day.
Registration for our Monday June 28th at 5:00 PM EDT Strategy Call with Andy Hecht below.