Gold, silver and platinum continue consolidation
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Many times, we have written about the phases of the markets and the most challenging pattern, consolidation. Known as the pattern that haunts traders because of its indecision. Consolidation is known as the greatest time of uncertainty.
There is one fact that is absolute, congestion will end, and the metals will break out in one direction or the other. The fact that the ranges continue to tighten is compressing the markets, which will lead to a much bigger move when they breakout.
With the trend being lower, our expectations are the move will come to the downside. However, all we can use is the current trend. Remember, trends change, markets reverse, and the next move could be higher. If we look like an investor, we will not let the short term affect our long-term decision.
We remain short and will sell all rallies into resistance levels. Gold resistance is 1780 based on December futures, Silver 23 based on December futures and Platinum 1020 based on January futures.
In all markets, price action determines what will happen in the next day, week, or month. 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.
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