Breakout in Gold

Those who may have to unwind a losing leveraged short position are in a really bad spot. There is not enough volume to confirm a breakout, but Comex hasn’t opened yet.

This is a significant multipoint trendline and the Bears have a herculean task ahead of them to reverse this near term change in trend, especially if the volume picks up as price moves higher.

 


I believe the most probable area of next resistance is around the $1650, which is both a prior “high volume node”, and also where it would intercept a major descending trendline in the bigger picture.

 

My most previous post on gold and a view of the bigger picture trendline can be found here.

 

Consulting? ScottPluschau@gmail.com

 

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