Gold and Silver take off – Could it be a jailbreak?
For weeks the metals have been showing bullish signs of breaking out to the upside. On Tuesday we reversed our Silver position from short to long as silver broke out and became a buy. We are now long Silver, looking for the trend to continue will stay long as long as March silver holds above 1730.
Gold had been showing bullish signs the last couple of weeks but continued to fail at key levels. That ended on Tuesday as gold broke out and reversed from short to long. We are now long gold and silver, expecting the markets to test higher levels.
One thing about being a mechanical trend trader is the simplicity of not trying to guess news and how it will affect the pattern and direction. After being short for an extended period we are now long gold and silver and looking for a test of the highs. One thing to remember, for now we are long but if something changes, we will not be afraid to reverse.