Gold Dead-Cat Bounce Or Start Of A Rally?
As we have discussed in the past,markets never announce themselves. With gold rallying this morning, thequestion is: Is this a dead-cat bounce or the start of a rally? There is no wayto know; however, establishing the support level is the key at this point.
For the last few days, we havebeen watching the $1,235 -1240 level and have stated that we would stay longuntil those levels were violated. There have been a couple of attempts to breakdown, but each time buyers stepped in.
With this morning's rally, we arewatching the support levels of $1,235-$1,240 but also the resistance levels of $1,248-$1,250.The action around either one of these levels will help us decide what willhappen next. We have no interest in being short gold but will close longs below$1,235 until we can identify a new buy level. For now, we will remaincautiously long.
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.