Gold and Silver Popping – By Todd Horwitz, Bubba Trading

 

As gold and silver consolidate in a range both appear to be attempting to breakout this morning which would set them up for more new highs. This is the pattern they are in, big rally, settled back into a consolidation level at support and then a breakout to new highs.

This ties into the phases of the markets which are consolidation breakout and blow off which is exactly what we continue tot se in gold and silver. The trend is up, the next run should take Gold to 1600 and Silver to 19.00 for the next round of consolidation.

Support in gold and silver have established themselves at solid levels, 1525 gold and 18.10-18.20 silver. Those levels should be used to be buyers. There appears to be no sell off in sight although we do expect pullbacks to support as we expect the rally to continue.

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.