The metals markets are attemptingto stop the bleeding and find a bottom. It appears that the sellers are runningout of steam. Although we have yet to see a reasonable rally and Thursday'ssmall attempt at one failed, gold was able to hold above the $1,180 level.
The type of action we are seeingnow could be known as base or bottom building and a rally could be near. Thereis a lot of work to be done around the $1,180 level. First it must hold the$1,167 low from the other night. Second, it must start building a floor around$1,180. Consolidation would be the best action.
Gold appears to have found abottom. There is no guaranty, but the price action suggests that the bottom isin. The best trade here is to watch and make sure the lows will hold. We aresmall buyers at these levels knowing support could fail and we may have tore-enter at lower levels.
By Todd 'Bubba' HorwitzContributing tokitco.com
Follow @Bubba_Trading