Gold trades below 1280, Now what? By Todd Horwitz, Bubba Trading

 


Tuesday was another ugly day for Gold as we wrote yesterday 1280 was coming. Gold traded as low as 1275 before settling just below our key level. This morning gold is slightly higher trading just over 1280, our expectations are for some consolidating action at the bottom end of the range.

The metals are at key levels and can go either way form here. We are watching the action around the 1280 level with intentions of buying, however it is not automatic. We must see how the markets react at these levels; failure here brings 1240 -1260 into play.

To be buyers we would prefer to see Gold consolidate in the 1275-1285 area for a few days to weeks building a base before stepping in. Sharp rallies from here are nothing more than short covering and we would be sellers.

We are looking to buy however from here it’s all about the market footprint. Observe patiently, if this is a buying opportunity there is time to get in, we won’t miss it.

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.