| Followers | 686 |
| Posts | 142417 |
| Boards Moderated | 35 |
| Alias Born | 03/10/2004 |
Tuesday, December 13, 2011 4:33:36 PM
Gold drops through $1660 By Trader Dan
* Tuesday, December 13, 2011
Gold is coming under increasing selling pressure as technical chart support levels are giving way. As these levels are broken, technically oriented computer selling is occuring. That, coupled with an exodus of traders to the sidelines ahead of the Christmas holiday, is leading to exaggerated moves as liquidity issues are now impacting trading. That is only going to get worse from here through the end of the year. The one plus is that this same dearth of liquidity can result in sizeable pops higher if some large bids hit the market on any news flashes that might impact trading.
Gold took out the bottom of the tightening triangle pattern yesterday but did manage to close above the critical horizontal support level near $1660. Early in today's session, it briefly violated that level but then moved back above it giving some hope to the bulls that it might be able to stabilize. That proved to be fleeting after the Fed statement hit the markets and off came the risk trades.
Down went the equity markets and up went the Dollar, in a very big way, as it is now trading solidly above an important technical resistance level just above 80 on the USDX chart. The Euro is sinking into oblivion with traders tossing it away and rushing into the Dollar, which they are for now viewing as having a better set of fundamentals than Europe, particularly since the Fed statement did not forecast the end of the world as we know it.
The Euro is now flirting with an important chart support level near 1.3000. Failure to hold there will send it quickly towards 1.2860 with a drop to 1.2680 not out of the question.
Continue reading...
http://traderdannorcini.blogspot.com/2011/12/gold-drops-through-1660.html
George.
Click on "In reply to", for Authors past commentaries.
* Tuesday, December 13, 2011
Gold is coming under increasing selling pressure as technical chart support levels are giving way. As these levels are broken, technically oriented computer selling is occuring. That, coupled with an exodus of traders to the sidelines ahead of the Christmas holiday, is leading to exaggerated moves as liquidity issues are now impacting trading. That is only going to get worse from here through the end of the year. The one plus is that this same dearth of liquidity can result in sizeable pops higher if some large bids hit the market on any news flashes that might impact trading.
Gold took out the bottom of the tightening triangle pattern yesterday but did manage to close above the critical horizontal support level near $1660. Early in today's session, it briefly violated that level but then moved back above it giving some hope to the bulls that it might be able to stabilize. That proved to be fleeting after the Fed statement hit the markets and off came the risk trades.
Down went the equity markets and up went the Dollar, in a very big way, as it is now trading solidly above an important technical resistance level just above 80 on the USDX chart. The Euro is sinking into oblivion with traders tossing it away and rushing into the Dollar, which they are for now viewing as having a better set of fundamentals than Europe, particularly since the Fed statement did not forecast the end of the world as we know it.
The Euro is now flirting with an important chart support level near 1.3000. Failure to hold there will send it quickly towards 1.2860 with a drop to 1.2680 not out of the question.
Continue reading...
http://traderdannorcini.blogspot.com/2011/12/gold-drops-through-1660.html
George.
Click on "In reply to", for Authors past commentaries.
Join the InvestorsHub Community
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
