Gold, silver and platinum have work to do lower
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
As we approach the end of the year, gold, silver, and platinum have work to do on the downside. The dramatic drop last Friday, Monday and Tuesday did a lot of technical damage to the charts. Gold broke down from congestion and is now below $1,800 based on March futures.
The next support level for gold is $1,750; if that fails, $1,700 is in play. If you have watched markets for any period of time, everything is based on probability and the most money is made trading with the trend. The break from congestion was a possibility even though the trend at the time was higher.
Gold should find some support around here; the best action would be consolidation. A rally from here would be bearish and a selling opportunity. The steep drop could continue as well, but a bounce is a day or two away. That bounce should be sold, resistance is at $1810.
Platinum has started to bounce once again and should find resistance at $1,010. The rally came from a blow-off to the downside; $ 940 is the next major support level. Although it is a downtrend, silver looks the best and is now in a range between $23 – $24. All metals are in a downtrend, which gives you an opportunity to sell paper and buy physical
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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