Welcome to the TFC Commodity Trading Forum.
Please feel welcome to join in on these informative ongoing discussions about trading futures and commodities.

The Trading Forum is intended for the open discussion of commodities trading. The management of this Forum does not agree or disagree with the ideas exchanged, and does not exert editorial control over the message posted herein. Read and post at your own risk. The risk of loss in trading or commodities can be substantial. We discourage the use of this Forum to promote trading that is acknowledged to be risky. Please note: many links from the Forum lead to pages on other web sites. We cannot take responsibility for nor endorse the information presented on those sites.

TFC Commodity Trading Forum

Feb Gold/ At Critical Point *PIC*

Feb Gold broke its 5 month uptrendline Tuesday and has remained in a very tight pattern just under the uptrendline which is now serving as resistance. Important price support and the line in the sand is the early Nov low of $1680. A break below $1680 combined with the lower Nov rally high would suggest a selloff to at least the Fib 61.8% retracement point at about $1638 if not further down. Gold needs to re-clear the broken uptrendline much like SPX did recently to be bullish again. The 20ema just crossed below the 50ema for the 1st time since August as well. And lower technicals are weak. Gold is at the critical point of the price pattern now and with the tight pattern of the last 4 days expect a sharp move out of this pattern. As the good book says "After small bars comes big bars." Many markets are treading water and looking for a trigger to move one way or the other.