Gold Building A Bottom
The interesting thing abouttrading is it takes a buyer and a seller to make a market, which then createsprice discovery. Two traders could look at a gold chart and have oppositeopinions -- one bullish and one bearish. Of course, this is what makes amarket.
Many out there use many differentindicators and tools that have been developed over the years. The problem withthese indicators is traders try to use them as an absolute instead of the guidethey were designed for. Trading is a game of probability not an absolute.
Based on all factors, theprobability that gold has seen the bottoms or at least the near-term bottoms isvery high, suggesting that being long gold at these levels has a higherprobability of success than being short. There is an option that most hate touse as they get caught up in their opinions and that is the tool of patience.
All real factors are that gold isforming a bottom and if a trade must be made here, it should be bought.However, we believe the best trade here is observation, letting gold completeits bottom, giving us a higher probability by just being patient.
Contributing tokitco.com
Follow @Bubba_Trading
Bubba@bubbatrading.com www.bubbatrading.com/ Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.