December gold held on to the 586 level and closed right below today's pivot. It is tempting to call a bottom, but we could very well see one more push down. The number to watch is 590.90, must hold support. If we do get another push, I suspect it will be to 577, 50% projection July H/L. ECB will be done selling reserves by September 26th, removing what has been constant selling pressure on rallies. Should we close above 604/605 in the coming days, the bulls would make a strong statement, although real resistance starts at 615. Today's candle is encouraging. Many skeptics out there and that will help. A long play is valid, just be disciplined with your stops.
This entry was posted
on Wednesday, September 13, 2006 at 3:06 PM.
