Gold and Silver higher, sell the rally
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Gold and silver are seeing a solid rally this morning, pushing up to our resistance levels. Until proven otherwise, we are selling at resistance with the trend still lower. Based on the trend and recent price action, there are two choices, observe and wait for the trend reversal or sell at resistance.
Since we are trend traders, and the trend is lower, we will be sellers at resistance. This does not guarantee that this rally will fail; however, based on the chart and the pattern, the path of least resistance is lower. This is the action we will take as traders.
As investors, we always buy physical metals and will continue those purchases. When accumulating physical inventory, price is not important. You buy high, and you buy low with capital that you will not need in an emergency. We accumulate for many reasons, the biggest being price appreciation over time
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.
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