As we continue to track the pattern and the footprints in Gold, overnight Sunday and Monday, Gold came down to 1384.70 held and appears to be reversing today. As of 5:20 EDT Gold is trading at 1296.
Our support level is 1380 -1390, 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.