A few more days of small advances and we should reverse the trend. Interesting look is Ira Epsteins midday TA report - Gold at around 909 was hovering for the third day in an overbought position and he mentioned the day before that if something stays in that position for 3 straight days then the stochastics both under 20 would embed in an oversold position and it would head further down to who knows where. At the time the price was 909.7, one stochastic was fluctuating between 19.5-19.8 - now just after Comex futures closed, either some bulls who couldn't wait for Monday, or some shorters anticipating what may occur, moved the price up over $5 from the close thus effectively taking it above the downward trend line but most importantly, taking the stochastics out of an oversold position, hopefully preventing a further oversold plunge.
Ira said gold was at a cross-roads not sure whether to go up or down - I think with the drop of nearly 16% give or take, chances with the fundamentals engulfing us over the financial system, the reversal of the trend has begun. Sure I hold long - but I'm just giving my observations. Other charts show the downward trends starting to plateau - reffering to the summary report on Jim Sinclairs website, while the RSI has also bounced from an oversold position.
If the biggest banks are closing out short positions by their hundreds - e.g Goldman Sachs in the last week or so has closed out over 3000 short positions, then that may be an indicator that the downward move is also losing momentum.
While I say patience is a virtue, it is the hardest thing to apply in practice - but I wait, no other choice.
Strong resistance will be around $940 by the time it gets up there, so once it is there, it will be interesting it if is sold off in number - but through 880,890 and now 900, a solid base has been starting to form that will be hard to break - fingers crossed.
