Gold has responded as could expected with a huge move in the dollar in response to Japan’s “intervention” in the currency markets to devalue their currency. That is what you do today when you are embroiled in a currency war, you debase your currency and steal from your country’s savers in order to be more “competitive” on the world trade scene. Nice.
The swing high has been made and establishes resistance at 1754, with the stronger resistance just above at 1775. Support is going to be the 45 day moving average, right where the gold closed at 1725. Stronger support exists just below there at 1681 where chart support and moving average support from both the 18 and 100 day moving averages is converging. The pullback comes at a natural and opportune time following 6 days of higher highs and an over-sold stochastic. Watch this stochastic because another day above 80 will result in an embedded stochastic, an indication of strengthening momentum in the market. Traders are about to be given an opportunity where a swing low can be established with a decent stop just below it. Right now to enter a long trade you are technically not wrong until the swing low of 1604 is taken out, a potential loss of over $100 and a trade that has a lot of risk. Traders should look for a confirmed swing low and buy on close. I like a pullback to the 18 day moving average near 1700. For investors, everyday is a good day to buy. Gold is going to 5 figures. Buy your gold, study Freegold, and most of all relax.