Gold Building A Base
After months of getting hammered,gold appears to have found the bottom when it hit $1,180 a couple of weeks ago.Gold appears to be building a nice base here and $1,190 looks to be a higherlow that should hold, although the new range in gold appears to be $1,180-$1,240.
The healthiest move for gold nowwould be consolidation of a series of double tops and double bottoms, allowinggold to build a solid foundation for the next rally. There was a lot of damagedone during the almost four-month sell-off. The only way to repair that damageis for gold to consolidate.
Dumb money is now carrying arecord short position, while the big banks are about as flat or neutral thatthey have ever been. This kind of action will create a monster short squeeze atsome point. For gold bulls, the best time for the squeeze is after gold hasconsolidated and confirmed the bottom. If it plays out that way, the metalscould start a bull run.
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.