Gold: As we continue to track the pattern and the footprints in gold overnight Sunday and Monday, gold came down to $1,384.70, held and appears to be reversing today. As of 5:20 a.m. EDT, gold was trading at $1,396.
Our support level is $1,380-$1,390. Naturally, gold stopped right in the middle before attempting to rally. Monday was ugly and the sellers were relentless. However, as usually happens, gold found support, held and is now attempting to rally.
In all markets, there are the weak hands and the strong hands. Typically, when there is a big move counter to the overall trend, it’s a sign that the weak hands are getting flushed out of the market. That appears to be the case from Monday.
Remember, just because gold is higher today doesn’t mean there won’t be another attempt to take out the underlying support. Levels are a guide, but nothing is absolute. We are bullish and expect higher prices. However, like love affairs, that can change in an instant.
Todd 'Bubba' Horwitz - Kitco.com |
