Dan Norcini:

Gold encountering resistance near $1780

by Trader Dan

Based on what we have seen in the price action the last few trading sessions, gold is having some difficulty convincingly clearing the level near $1780. That has now formed as a technical chart level that will need to be taken out to set up the potential for a thrust to the $1800 mark. If the bulls can do that, the level near $1820-$1825 comes into play.

Downside support still remains untested near the $1750 level. You will recall that it was this level that kept the price from moving higher on the way up after gold stalled out there on several tests.

I will feel extremely confident that this market is going to move higher as long as we hold above $1725-$1720 on any possible move back towards those levels.

This market has had a sharp move off the lows near $1535 that was nearly unimpeded all the way to $1750. It then consolidated for nearly two weeks working in a range of some  $60 or so over that time period. The sharp spike higher through chart resistance  $1780 signalled the end of that particular range trade. It could be that the metal wants to base here a bit and gather another load of stem before moving higher. We’ll see what we get in the next couple of trading sessions.

Silver looks to me like it was capped below major chart resistance at the $35.50 level on the continuous chart. Obviously the perma-bears know well the significance of that level. Shorts are digging in there and it will be up to the hedgies to dislodge them if they are to make this thing run to $39.

This entry was posted in Dan Norcini, Gold, Technical Analysis, Trader Dan's Market Views. Bookmark the permalink.

2 Responses to Dan Norcini:

  1. Good web site! I really love how it is simple on my eyes and the data are well written. I am wondering how I might be notified when a new post has been made. I have subscribed to your feed which must do the trick! Have a nice day!

    • MatrixSentry says:

      The subscription should let you know when a new post goes up. I try to put only the most pertinent stuff up these days. My hope is that most people that find my sight eventually adopt the “Freegold” perspective and end up over on the FOFOA blog at fofoa.blogspot.com. There is real power in physical gold ownership versus paper gold ownership and FOFOA is where one goes to discover how to harness this power. Best of luck!

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