Gold Fails at resistance – By Todd Horwitz, Bubba Trading.

 


Once again on Tuesday Gold attempted to breakout above the 1310 resistance and once again failed. That doesn’t mean it won’t breakout today but 1310 is showing a formidable foe keeping the metal in the consolidation phase.

Gold is slightly higher this morning but still below the 1310 level. There is no telling when the yellow metal will breakout but bases on the recent action our expectations is to see gold fail and head back to the 1290 level.

The fact that gold has made higher lows indicates the future is bullish however for now expectations are flat to lower. This action is common in all markets, investors should hold while traders should be looking for a pullback.

Silver is in a similar pattern but should breakout to the upside before gold. Silver is in the same pattern as gold but congesting at the bottom end of the consolidation pattern. For now, expectations are for both metals to churn testing support before breaking out

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.