Gold and Silver reaching support – By Todd Horwitz, Bubba Trading

 
2019-02-12

On Tuesday gold and silver were under pressure as the equity markets continue to make new highs. The metals were under pressure all day and all rally attempts were meant with sellers. The pressure on these markets continues to build.

Gold and silver have come to the moment of truth as they reach their major support level. The patterns alone suggest that gold should bounce, and silver should fail. We are expecting a dead cat bounce in silver which should be a quick pop followed by a drop. Gold should bounce and then continue to the upside.

This pattern is common is all markets, silver is in a downtrend descending lower. We expect silver to trade down to the 17.00 level. Gold should test the 1560 level before resuming its rally and test 1600. Ultimately, we are looking for Gold to test the January 8th highs and silver to test the 17.00 low. Gold is based on the April futures, Silver based on the March futures

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.