Make Kitco Your Homepage

Gold and Silver higher, sell the rally

Commentaries & Views

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.

Here is the registration for Monday’s Call October 18th

Monday Call Registration October 18th 4:30 EDT

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.