Now that the metals have hit ourdownside targets and have bounced, is it time to buy? The answer is not as easyas one might think. As an investor, you can always buy as long as you areinvesting money that you don't need for the mortgage, car payment or otherdaily living expenses.
As a trader, the buy was near the$1,180 level. It's now time to watch and see how far this bounce can take gold.Somewhere between $1,210 and $1,240 should be resistance. We are looking forthe markets to consolidate before making the next big move, which we believewill be higher.
The trend is still down and untilthat changes, there is no reason to believe that gold will continue to rally.The key here is the pattern that develops. We are not sellers but are notaggressive buyers either. Since all markets are born out of consolidation,being patient enough to wait and observe is often the best trade.
By Todd 'Bubba' HorwitzContributing tokitco.com
Follow @Bubba_Trading