Gold drops into a very strong support level and bounces

The market has found good buying just above $1460 and continues to push higher off of this level as it enters very early trading in Asia. The drop of nearly $110 has stimulated value based buyers of the metal who have been waiting on a pull back.

If the market can push through $1500 and hold that level and not sink back below it, it will be friendly. Some will depend on the payrolls number out tomorrow. If it is a stinker and comes in below expectations, we might see more risk aversion and potential selling as the unthinking, knee-jerk reaction will be to rush to the “safety” of the US Dollar ( I have to gag when I write this). The Yen also will probably benefit although the Japanese monetary authorities are probably already saying things unfit to print over its recent climb back up to its last whipping level.

Even at that, the market has fallen, so far, so quickly, that any short who wishes to actually realize their gains is going to have to ring the cash register before long if they are wise. Bulls make money; Bears make money but Pigs get slaughtered.

snapshot-673.png

http://traderdannorcini.blogspot.com/2011/05/gold-drops-into-very-strong-support.html

Sent with MobileRSS for iPhone

Advertisements
This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s