Once again, we saw an instantreplay in gold when it failed at resistance on Wednesday. At one point, goldhad rallied over $20 and was trading around $1,369 before selling off andclosing at $1,356.
The failure at resistance is disappointing.We are expecting a huge move in either direction. With Wednesday's failure atthe top, this now brings the downside into play. The selling continues thismorning with gold trading at $1,348.
Gold is still trading oncongestion; the big move is still in play. If gold could have closed above $1,365,the big move would have continued up, but now it can go either way. Now, $1,330will be the key level on the downside, and inability to hold $1,330 would leadto the big move to the downside.
By Todd 'Bubba' HorwitzContributing tokitco.com
Follow @Bubba_Trading