What just happened, page-69

Last nights action in the Comex was a good sign for the POG. As expected, there was an attempt to sell down the POG. Support was strong at $1245 and it made a nice little recovery under strong shorting pressure. To my eyes that indicates there is a strong underlying positive sentiment supporting the POG in the futures market.

The $1245 support level will remain a point of attack for the shorters. It is an important technical level and they will be trying to induce the TA speculators to start shorting if that level is breached. Following that the next important level is $1220. The commercials that are short will be aiming to induce this technical sell off in the POG in order to get down to their target range for covering. I estimate their target range is between $1150 to $1180.

Last nights action indicated that the commercials are going to have some difficulty getting what they want. That is a bullish sign. If they can't get this downward movement then they will have to start covering at a higher price than they anticipated. That will give the POG a nice kick up. Additionally, if the $1245 support level holds it will induce more buying by the TA speculators and that will add flame to the fire under the POG. It isn't over yet, but last night was encouraging for the bulls.

The next 2 weeks action will set up the trend of the POG for the next 6 months IMHO. There are some important fundamental activities due during the next 2 weeks as well. One being the Fed Reserve meeting next week. Watch this space because the commercials still have lots of firepower in their arsenal.

POG action or lack off at around noon today will also be an indicator. Will there be a follow up to yesterday's attempt at selling off?

Cheers