Gold’s Bullish Action. “More impressive was gold did not experience a dead cat oversold bounce..” By Todd Horwitz, Bubba Trading

 

After all the fear and weak hands selling gold and silver, the metals appeared to bottom on Wednesday. As we have detailed for weeks the 1500 level was the key and the recent action suggests that we are correct.

On Wednesday gold held 1500 with a couple of pushes below but ultimately held and closed above the key 1500 level. More impressive was gold did not experience a dead cat oversold bounce it had a soft rally showing a lot of strength holding key support.

Looking at the action in the metals the fact that the rally was not a spike higher but a battle to hold the key support suggests this rally is not over and a run higher is still in the cards. This morning gold is trading at 1512 December futures and again reminding you that the key level to watch is 1500. We remain long and bullish until proven otherwise.

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.