Charting Gold

• Posted by Robert Sinn
• on November 10th, 2011

Don’t ask me why exactly, but gold ($GC_F, $GLD) typically sells off in 3 day spurts. During my 7+ years of experience trading the shiny yellow metal I have witnessed this phenomenon on dozens of occasions. Today is the 3rd day of a $70 pullback that began on Tuesday morning – today’s break below 1750 in $GC_F triggered a ton of sell stops that drove the price of the December contract down to 1736.60 before reversing back above 1750. I will be focused on where gold closes today, a close above 1755 would be very constructive while I would view a close above 1760 as outright bullish.

 

Click to enlarge

Below today’s low of 1736.60, there is a major area of support 1727-1730:

 

 

 

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