Dead-Cat Bounce Or Has Gold Rally Begun?
On Monday, gold reversed smartlyfrom the lows of the day to close higher. The rally brings about the question-- was the move on Monday a dead-cat bounce or has the rally begun? Based onthe trade and where gold is now, a case can be made for either.
If you are in the dead-cat-bouncegroup, the bounce from oversold conditions makes sense, with gold being underselling pressure for weeks. A relief rally would be no surprise and new moneycan come in and continue to sell the metal, assuming the downtrend wouldcontinue
However, if you are in the bullcamp, gold came right down to our $1,280 level and this should be the bottomfor the move. Gold has been bullied by the strong dollar, interest rates andrallying equities but appears to have put in a bottom. The $1,280 level shouldhold and the rally should be on, with only a small chance to see $1,260.
Contributing tokitco.com
Follow @Bubba_Trading
Bubba@bubbatrading.com www.bubbatrading.com/ Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.