Gold failed to see follow through buying yesterday, with the price steadily drifting lower all day in what initially looked like a classic "bull flag" pattern. However, the selling accelerated towards the end of the afternoon, negating this pattern.
Gold found support at the rising trend line of the newly forming uptrend and has moved up with the trendline this morning.
If this trendline breaks, as looks likely as we write, we expect gold to fall back towards the 1550 area.
The bulls will be disappointed to see the lack of follow through buying yesterday, suggesting the move up was merely a "knee jerk" reaction to Bernanke's testimony to Congress.
However, until the trendline breaks the bulls can have some hope that the price is heading higher in the short term.
Today's video looks at previous "bull flag" patterns and our strategy for our current trade.
Gold found support at the rising trend line of the newly forming uptrend and has moved up with the trendline this morning.
If this trendline breaks, as looks likely as we write, we expect gold to fall back towards the 1550 area.
The bulls will be disappointed to see the lack of follow through buying yesterday, suggesting the move up was merely a "knee jerk" reaction to Bernanke's testimony to Congress.
However, until the trendline breaks the bulls can have some hope that the price is heading higher in the short term.
Today's video looks at previous "bull flag" patterns and our strategy for our current trade.