Golds "Bubble Camp" Gains Momentum, Bulls Maintain Long Term Advantage

Gold closed sharply lower due to profit taking on Wednesday as it consolidates some of this year's rally. The low range close sets the stage for a steady to lower opening on Thursday. Stochastics and the RSI are diverging but remain bullish signaling that sideways to higher prices are possible near term.

If October extends this year's rally into uncharted territory, upside target are hard to project. Closes below today's low crossing at 1791.00 are needed to confirm that a short term top has been posted. Gold's long term up trend is clearly still intact and there is no signal of reversal yet.

First resistance is Tuesday's high crossing at 1920.70. First support is today's low crossing at 1791.00. Second support is the reaction low crossing at 1701.70.