Key Reversal in Gold, Silver.

Both precious metals, Gold and Silver have seen a key reversal day on Thursday, Oct 7. Prices opened with an upside gap, moved further up, then suddenly began to fall, filled the gap closing near the lower end of the range.

A key Reversal day has limited long term significance. It does denote an excess of supply. Often it will become an intermediate top, but equally often, the reversal day is just a short term correction. When traders sense that a reversal day is developing, they should exit. It is no fun watching your gains go away as the market dips.

Every trading strategy should have a reentry mechanism. For Silver, I will wait for a dip to 33000 support. No hurry.