Wednesday, September 18, 2013

Gold jumps quickly today, up around $30

Well, very unexpected. I was expecting the bears to loose the battle at $1300 today and have gold plummet down towards its next zone of support. But...lookey what we have here.

This will be interesting to see how it behaves if/when it gets to its previous support zone at 1348. In normal conditions one may expect it to act as a strong point of resistance, but given the fickle nature upon which it broke it (lots dumped into the night market, down through the zone over the course of a minute) I would not be delighted, and not overly surprised to see it go through without a lot of trouble. It already tried once so far, and was pushed back down pretty quick. I'll be watching for another attack and paying close attention to how it behaves.

Further to that, if it can manage, it sets the stage for technicals of greater significance. Recall the intermediate trendline which was broken upon gold last major decent. Basically, if gold can hold this level, technicals become good decent again.

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