Gold and Silver headed lower. Based on our algorithm we are still long however we are very close to changing to the short side..By Todd Horwitz, Bubba Trading

 

2019-01-14

Gold and Silver appear to be headed lower and there doesn’t appear to be anything that will slow the metals from another trend reversal. All the wishing and praying won’t make them rally to last weeks highs.

The highs made last Tuesday night were made on a move that was based on panic which is never the beginning of a move. Typically, blow-off tops or bottoms are the end of a move not the beginning. Last Tuesday’s move looked like the end which means gold is probably headed back to 1500 and Silver to 17.50 based on the futures markets.

Based on our algorithm we are still long however we are very close to changing to the short side which was very close based on Monday’s close. If the metals close lower today, we will reverse and get short which the charts and the patterns are indicating. The next move of size should be 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.