What will need to be watched Gary is a classic back test taking place as Gold reaches for $1272 before resuming its down trend taking out recent June lows....keep an eye!
The reason behind the pop in Gold today....its all about the close!.....jjhttp://www.zerohedge.com/news/2014-06-10/precious-metals-jump-china-unwind-fears-spread
Bang on Gary, a "close" below $1240 is the key for bulls to sell and once again sit on the sidelines....and its where we Shorts will add to positions....jj
jj - I respect your short gold sentiment and positioning. A trader has to be mindful of the trend and gold has certainly been in a downtrend. I guess the trend is defined as 'changed' when the lower lows or higher highs aspects of price movement are considered and show the change - admittedly somewhat in retrospect.That said, the stock market is still exhibiting higher highs so I guess the trend there is up. But is the gold market showing lower lows and demonstrating a continuing bear market trend? My two cents (and that's all it's worth) is that gold is making higher lows - at least on an intermediate cycle basis. If true, does that concern you with short positions in gold against what may be a market that is not exhibiting a bear market trend?
The downward price momentum since gold's top on April 14th appears to have been entirely defeated with yesterday and today's price action. Yes, looking at the chart of gold itself will not tell you this but some momentum indicators are helpful. Try Slow Stochastic (10,3) or RSI (10) or best of all, TSI (7,4). Draw your trendline across the tops of the indicator itself and see for yourself.
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