Gold and Silver Back on support – By Todd Horwitz, Bubba Trading

 


Wednesday saw gold and silver bounce after Monday’s big selloff. We expected a dead cat bounce which is exactly what we got. This morning the metals have erased all yesterdays gains and are in danger of breaking key support.


With gold and silver potentially ready to breakdown, is there any chance that they can rally from here? The simple answer is yes, they can rally however based on our work they are both ready to breakdown. If 17.50 December silver and Gold 1480 December futures doesn’t hold much lower levels are coming.


We all know that markets never announce themselves and anything can happen from here, but probability and statistics lean to the selloff continuing. We are still sellers of rallies at key levels if there is a rally. This sell off brings 17.25 -17.00 silver, 1465-1460 gold into play. Metals should be headed lower


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.