Gold headed to 1280. This does not change our outlook for higher prices in time but for now the strong hands are the sellers. By Todd Horwitz, Bubba Trading.

 


Monday was April fool’s day and apparently there was some fool’s gold as the yellow metal tried to rally early before selling off most of the day. Gold appears to have found new resistance at 1300 as it churns on both sides of it only to stay below that level.

Since reaching our initial target of 1350 gold has been under immense pressure and seems to be headed to 1280 which will be another key battle ground. Obviously, there is no way to know when the 1280 level will be reached however, we expect sooner rather than later.

For now, the yellow metal has lost its desire to go higher and the path of least resistance seems to be down. This does not change our outlook for higher prices in time but for now the strong hands are the sellers. We will be looking for a test of 1280, look for the reaction at this level before making our next move. We are bullish over the next 12 months, neutral over the next 6 and bearish now.

Depending on how gold trades our current and six-month views can change but for now the trade appears to be sell rallies until gold breaks out over 1320. Markets change, patterns change, be flexible and let the markets tell you what’s next.

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.