Here's the updated chart I'm following.
Here's the news from a bearish perspective:
- Confirmed breakdown thru $900 support, first fibonacci and trendline.
- Dollar moved up today.
- Trader Dan of www.jsmineset.com says that the $850 have been targetted by the recent technical action.
Hears the bullish news:
- There appears to have been at least some Indian buying in the last couple of days. I can't give you a link for this. This is probably the most important thing I'm looking for prior to moving that cash back in. The 24 hour gold chart (see below) seems to confirm this with a rise thru the Asian open followed by overnight steadiness.
- RSI is getting closer to oversold (30).
- Its somewhat rare to have more than three big red candles in a row and that's where we stand now. I expect some kind of breather in this downward movement.
- General market rally seems overextended and another downturn and renewed flight to safety may have started today.
I expect that I will stop lightening for a couple of days, but resume selling if that 200 day moving average and $850 get seriously violated.