Another quiet day of trading due to Hurricane/Superstorm Sandy saw gold move in a narrowing range around 1710, forming a triangle which is fast approaching the apex.

This morning, gold appears to be breaking out of the triangle to the upside, as we expected, with resistance above at 1718, 1730 and 1755.

We should see a bit more life come back into the markets today, as New York slowly gets back to business, though it will be at least a week before we see "business as usual".

We are entering an historically bullish time of year for gold, we expect to see higher prices into the end of the year.

Today's video looks at the trading of the past couple of days in more detail.

Gold was largely unchanged in very quiet trading yesterday, as Hurricane Sandy brought New York to a standstill and financial markets remained closed all day.

Gold continues to form a base above 1700 after the selling of the previous couple of weeks.  We expect this level to hold and a rally to start soon, or alternatively after a brief spike down below 1700 to take out the stops located just below the round number.

We expect another quiet day of trading within a narrow range as the US financial markets remain closed for a second day.

We noted on Friday that if gold could hold 1700 and rise from there it potentially would form a bullish "double bottom" on the charts.

That is precisely what happened, with gold moving sharply higher in the afternoon to finish around 1713 and form a "hammer" candlestick on the chart, as well as the "double bottom".  Gold also broke out of the steep down trend channel the price had been in since the 1697 high.

The previous support at 1718 has now become resistance, if gold can overcome this barrier then 1730 is the next level of resistance, followed by 1755.

Today's video looks at the price action on Friday in more detail and our strategy for our next trade.

As we noted in yesterday's blog, we expected gold to find resistance at 1718 and this is exactly what happened.  After hitting this level early in the afternoon, gold fell away and is now trading around 1700 again.

If 1700 holds, we will potentially form a "double bottom" on the charts, a move up from here would therefore be bullish.  However, if 1700 fails then 1693 and 1680 come into play.

We think that a bottom is not too far away now, though we could see a spike down to flush out sell stops before we start to rise again.

Today's video looks at the recent down trend channel and support and resistance levels in more detail.

Gold continued to fall yesterday and tested 1700 as we were expecting.  The market found support at the round number and has recovered this morning.

It is possible that a low is in for this correction, though we need to see more evidence of a bottom before we look at a long position.  Resistance will be found at 1718, 1730 and 1755.

Today's video looks at some signals that we use to indicate whether a bottom is in and levels we consider key for confirmation of a bottom.

After collapsing to lows just above 1700 yesterday, gold has stabilised overnight in very quiet trading, though we would be very surprised if we did not test 1700 from here.

Oil has found suport at $86, being the 61.8% retracement of the rally from the end of June to mid September, and equities have halted their decline, at least temporarily, which is also helping gold to stabilise.

Gold is almost in the area we have been targeting for a bottom, though we do expect some further declines.  Our subscribers are aware of our targets and strategy and remain poised to enter the market.

Today's video looks at the decline in more detail and the interaction with oil.

Gold found resistance at 1730 after a feeble attempt at a bounce and has now turned lower again.  A test of the lows at 1714 are close and we expect a test of 1700 to follow shortly afterwards.

Oil is under pressure and testing lows around $88, equities appear to be forming a top and the dollar is finding some support.  However, seasonal factors are in gold's favour for a rally into the end of the year.

Today's video looks at potential areas for a bottom and what we are looking for before taking a long position.

Gold sold off hard on Friday - after attempting to form a "double bottom" around 1730, the selling pressure was too much and the price fell all the way back down to support at 1718.

Overnight, the price made a new low around 1714, though the RSI on the 1 hour chart was higher than the previous low, so we may see a very short term bounce here.  However, the price has turned lower from 1725 already which does not bode well for an extended rebound.

Today's video looks at the strategy for our next trade and how we will identify when a tradeable bottom is in place.

Gold turned lower yesterday after finding resistance around 1753 and has continued to sell off overnight.

The market did not reach the 20 DMA we were targeting for the bounce and the market looks poised for another leg down.

The 1733 level should provide some support, being the 23.6% retracement of the move from the May 2012 low, though we expect the price to break below this level. 

Today's video looks at the wave count for the correction and our targets for this Wave 2.

Gold oscillated around unchanged for most of the day yesterday in quiet trading, as the market continues to move upwards in a Wave B correction within a larger Wave 2 correction.

The strategy for our next trade is clear and our subscribers have been informed of the levels we are looking for to re-enter the market.

Our success over the past decade and a half has largely come from knowing when to sit on the sidelines, when to enter the market and when to exit a partucilar trade - it sounds simple but most traders have a tendency to "over trade", to always want to be in the market, to always want "skin in the game".

We generally enter 20-25 trades a year, carefully selecting those positions that give us the best risk:reward ratio and utilise active stop loss management to reduce the risk to capital as quickly as possible without jeopardising the trade.

Many of our subscribers thank us for instilling discipline into their trading, removing emotion and curbing the "gambling instinct" that leads them to over trading and ultimately failure.