Are The Gold Bears Already Exhausted?

The only Trade Triangle that remains in a positive position for gold is the longer term monthly Trade Triangle. Both our intermediate and short term Triangles are negative and have been at much higher levels.

This market has seen massive liquidation and profit taking in the past few weeks. We expect gold will regroup at or around current levels. We do not anticipate this market going straight up from here. Only long term traders should maintain long positions with the appropriate money management stops in place.

December gold futures closed up 57.80 an ounce at $1,652.60 today. Prices closed near mid range today. Gold was supported on bargain hunting buying and on bullish "outside markets" a weaker U.S. dollar index and sharply higher crude oil prices. Prices Monday hit a fresh 2 1/2 month low of $1,535.00, but have made a very strong, quick rebound from that spike low to suggest the bears became exhausted at the lower price level and that a near term market low is in now in place.

Monthly Trade Triangles for Long Term Trends = Positive
Weekly Trade Triangles for Intermediate Term Trends = Negative
Daily Trade Triangles for Short Term Trends = Negative
Combined Strength of Trend Score = – 70



Here is a preview of our MarketClub Trade Triangle Chart Analysis and Smart Scan technology