Gold Hovers around 1280. Events like Venezuela are always signs that a market is getting ready to reverse the current pattern – By Todd Horwitz, Bubba Trading

 


Gold is acting as we would like as it hovers around the 1280 level. Although the yellow metal traded as low as 1273 on Wednesday that is certainly within the margins of error, levels are not exact. 1% plus or minus support or resistance is basically the same.

There are reasons to believe that gold has made the bottoms although we are not committing new money yet. The fact that Venezuela has puked out much of their gold certainly helps in making a bottom. Events like Venezuela are always signs that a market is getting ready to reverse the current pattern

What do we do now? The answer is simple you observe patiently waiting to see if the bottoms have been made. As we wrote that last few days the best action from here would be consolidation which will help build a base. We would like to see gold consolidate for a week or two which could turn us into buyers, for now we watch

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.