Gold – 8 Nov

Gold price found resistance at the big round number of 1800 and was repelled lower in afternoon trading. But prior to the selling, price made another swing high and closed above 1775 for the 2nd day. Support is still the 1775 level with 1750 being the swing low that must be sustained to keep the bullish stance and the short term up trend. Resistance is the Bollinger band and then the 1825 area. RSI is getting close to over-bought territory with a reading of 65. Stochastic is still embedded and as long as both the K and D lines remain above 80 all pullbacks should be viewed as buying opportunities.The 18 day moving average is going to put in a bullish cross of the 45 day moving average tomorrow and in doing so the chart will be in the preferred bullish configuration where all moving averages are below the current price in order from shortest to longest duration.

I like the rather pedestrian trend channel because it shows a solid pattern of consolidation as it progresses. For traders, you are being given plenty of trading opportunities. A new one may present itself tomorrow if price is off and approaches support around 1775. A buy with a stop just below 1750 would protect against a reversal of fortune and a short term trend change. Investors and Freegolders can catch up on some light reading or maybe catch a nap, safe in the knowledge that gold is going much higher and anything that happens tomorrow is inconsequential to the goal of bringing wealth across the $IMFS death event horizon.

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