Friday, February 20, 2009

4:47AM PST GOLD PULLS BACK ON LIGHT VOLUME

Notice that gold has broken out of the dark blue down flag and has reached all the way up to the top line of the dark green intermediate trend channel and is now dancing around on the line looking for support. The low volume on this move concerns me, but that will all change as we near the NY open. They, of course, will do everything possible to keep gold BELOW $1000, but that round number is NOT as big a deal, having already been exceed months go, and can be exceeded easily by tens of dollars before pulling back to that level, which should logically become a support level just by virtue of it's round number significance.

No comments: