Gold and Silver going nowhere – By Todd Horwitz, Bubba Trading

 


Once again gold and silver seem in a hurry to go nowhere. They are both continuing their rotations before they head lower to their ultimate support levels which are 1280 in gold and 1460 in Silver.

Notice how fast the markets can change, just a few weeks ago the metals were on the verge of breaking out to the upside. Here they are now hanging on for dear life without collapsing. This is the area where most traders and investors get fooled and usually trapped in a bad position.

Investors should not be concerned, you bought the metals as a long-term investment and history tells us they will rally again and increase in value over time. It’s the traders that get themselves into trouble here trying to guess the next move without simply watching the market footprint.

The metals could have a bounce in the next day or 2 especially with the jobs release on Friday, however we expect a test of the lows before there is any meaningful rally. The best trade here is the one of patience.

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.