Can Gold Hold Support? The big question – what’s a trader to do? What’s an investor to do? By Todd Horwitz, Bubba Trading

 


It was just a couple of days ago and everyone couldn’t wait to buy gold as it appeared to be breaking out of resistance headed back towards the highs. We told everyone who asked that it was better to wait until the move confirmed that wit wasn’t a false breakout and not let the Fear of missing out get in their way.

Just 3 days later Gold is now testing the bottom end of the range and is in danger of breaking out to the downside. As we said at the top end of the range, don’t chase it up let the footprints appear and be patient. We will say the same thing now, let the move confirm before panic selling. More than likely Gold should see a bounce, although 1280 is the ultimate support.

The big question – what’s a trader to do? What’s an investor to do? The answer is simple and always the same, traders should wait to react from the current move, depending on the type of trader you are you could be protecting profits from being short gold. Investors should stay the course, the very name of investor means these short term gyrations should not cloud your mind or force your hand to panic.

Todd Horwitz
Chief Strategist
BubbaTrading.com

Financial Markets and Political Commentary
 

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About the author

Todd Horwitz - Author of “Average Joe Options“. Todd began his trading career in 1980 at the CBOE. He was one of the original traders in the OEX & helped start the SPX. He is a member the CME where he trades S&P futures as well as foreign currencies & is a regular contributor to CNBC, Bloomberg, BNN, Fox & many other major news networks.