Gold, silver and platinum find new levels

As gold, silver and platinum prepare for the next big move higher, they now find themselves consolidating. The bullish action shows us this consolidation at higher levels than before. The set up is bullish but this pattern can last a few days before the next leg higher.

This is a test not a drill, traders and investors have their emotional sides tested on a regular basis. We have written previously about the different phases, the consolidation phase, or the greatest time of uncertainty challenges market participants to trust the price action.

All signs point to a continuation rally in Gold, Silver and Platinum. We know that there are no guarantees that the next leg is up however we can only use the information that is in front of use. The current price action suggests a big rally that should bring March Silver to 26.00, February Gold to 1900 and January Platinum to 1100.

In all markets price action determines what will happen in the next day, week or months. Keep the two strategies separate, the worst trade anyone can make is turning a trade into an investment hoping for a way out. Traders must learn to take their losses and move on to the next trade.