Gold and Silver Consolidating. Typically, the breakout follows the prevailing trend which in the metals is lower – By Todd Horwitz, Bubba Trading

 

As gold and silver prepare for their next move, they are in the consolidation phase. We have written many times before that this phase is the most challenging and creates the most uncertainty for traders and investors.


When the phase of consolidation ends the markets will breakout in one direction or the other. Typically, the breakout follows the prevailing trend which in the metals is lower. With another close below 1500 in December gold we are expecting a test of 1460 and possibly 1440.


Silver looks stronger than gold, but the key level is 18.00 in December futures. However, silver could breakdown as easy as gold which based on the action, we would expect lower prices. The bottom line is simple, until the price action and pattern tell us different, we are sellers of the metals

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.