the POG will do what it will do the key question is do the...

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asxunsullied

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01/07/22

17:44

Post #: 62326317
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Originally posted by Launched: ↑

Turns out that $7.13 level was too much for buyers to overcome without a share being traded above that level.
$7.13 was in fact the days high - and a great place to open shorts as the drift down was done with minimal fuss and no pullbacks.
($7.11 was good enough for me with an exit on close making for a great day)

Since posting earlier today gold did make a lower low, as anticipated, with POG dropping as low as $1794 in the Asian session.

Gold is now trading in an area of high significance as it's right around the most traded price for the last 18mths.
This area is known as the Point of Control (POC) and you'd usually expect a decent reaction from the market - at least initially.

There has been that initial reaction already with a quick bounce back to $1799 but a move above $1800 has not been forthcoming (yet) - although the night is young and I think we'll see a few big moves in the Euro and US sessions to close out the week.

Bulls will really want to see the POC defended with a possible overshoot down to $1770 still ok if can get a proper bounce from there.
However if this level fails then it will open the door to $1730 - this is certainly a level I'd expect to see buying step in.

Regarding NST and I have to say the price action has been very negative this week - and I'm not talking about the price dropping.
I'm talking about how it has dropped.

Obviously the price has dropped significantly this week, however the two 'short-burns' that have ended with price dropping straight back down soon after is cause for concern.

These type of moves are done to create buyers when there are none available.

To simplify, the 'buyers' were not willing participants but were forced into buying, most likely via their margin lender.
Once their position exceeded margin requirements those positions will be automatically liquidated (by buying to close it out).
This 'buying' is then used by the smart operators to 'sell' (short) into.

Does this mean NST is doomed in the immediate future?

Honestly, I have no idea or else I would have held a position into the weekend.

Bulls have every chance for a reversal from around this level as POG is right in zone most likely to bring out the buyers.
NST also looks to have limited downside (if POG holds)

Bears are obviously in control of NST currently and trading here does give the indication that lower prices are a high probability but I'd tread with caution.

I guess we'll just have to wait to see what the underlying market wants to do at such a significant level...

Interesting times ahead.

Stay nimble and good luck which ever way you trade

AIMHO
DYOR
GLTAH

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the POG will do what it will do the key question is do the Australian producers have their costs under control?

Last edited by asxunsullied: 01/07/22

NST Price at posting: $6.81 Sentiment: Buy Disclosure: Held
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0 Great analysis

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