Gold and Silver – No Change Looking to Breakout
On Friday we talked about the potential of the metals to breakout in one direction or the other. The action was slow and choppy which is continuing this morning. The conditions are extremely overbought which can lead the metals in either direction.
There is no question that gold and silver will breakout big, leaving the question which way and when? What we know for sure is gold and silver will make a big move. Although we remain short the move could be higher the key will be the trading action from these levels.
There are a couple of things that can happen, the metals can consolidate at these levels before breaking higher. They can fall apart from here and resume the downtrend they were in before the recent action. There is only one way to know for sure, follow the footprint and be patient enough for the markets to tell you what the next move is.