Nanood, if you subscribe to the concept of a breakout or...

Nanood, if you subscribe to the concept of a breakout or breakdown then the trend following method is much easier to take. This is not perfect and nothing in trading follow any rules of logic all the time.

CBA $70.30 was the support I was looking at and there was a definite break. Relatively speaking it was a small one and not significant at the time to be definitive because the trend is still very much UP but in a big range mid last year. I could even show you the bearish H&S pattern and it would be akin to picking tops and bottom. In an uptrend I place more significance to strong support with double/triple or whatever bottom. Vice versa in a down trend to resistance.

It is easy to say that the breakdown didn't follow through so far, I have no ownership of price directional movement. My dilemma is that I have bank exposure and being in a portfolio that had fulfilled the financial exposure I could not get more exposure but CBA I reckon was a good by from $70 upwards. Tight range though so I see $79 as distraction zone for the bulls.

This is what I see happening to gold price. A little fakeout of a strong support range is what the market makers are instigating before FOMC.