Advanced GET Trading Blog: It's A Gold Rush...last follow up

The February 6, 2008 date was in fact a turning point as the market moved up from the low of 888.4. I covered some of the position at 895.0 instead of the 883.3 number. If you count bars from the Jan 30 high of 942.2 we have three days down (with an inside bar) and three days up. By way of overbalance the range of the three days up were not able to match the range of the three days down from the high. In fact in came in pretty square at 61.8% retracement. The China market , a major player of Gold these days, has been closed all week because the the Chinese Lunar New Year. They will be coming back to the market on Monday (actually Sunday night for me). If a reversal indication should materialize, I will look to add to my short position, otherwise I will simply be stopped out at 931.0.

As I mentioned in a previous post, the US Dollar has found some solid strength. Interestingly enough, it has done so in unison with Gold. It is not common for them to move in tandem so I am looking for Gold to reverse and for the USD to continue finding strength.

(Click on Chart to expand to full view)

Gold now sits in a critical zone. The type of behavior that it makes in 921.6 to 930.7 zone will communicate to me where he potentially wants to go from here. My analysis on the 60 minute (24 hour chart) is the key for me here. If it shows weakness at this level is should move down at least 53.8 points. In the event it moves down 67.4 points then there should be follow through in the 87 to 140 range. Before this can materialize, it must first show me a reversal/topping formation in the 60 minute time frame that creates a lower high in the aforementioned zone.

Trade Well,

Ernest O.

PS - Below is is a picture of the current 60 minute chart. Also of note is how well the Gann Box captured the move up from the low. Compare it to my previous post (It's A Gold Rush...follow up 2) and see for yourself. It was drawn long before the current price action.

PPS - I thought I would leave you with this on the humorous side...to be "Politically Incorrect" (Although I agree with it WHOLEHEARTEDLY!) LOL...

http://www.youtube.com/watch?v=vkDgKG2Uw9A

(Click on Chart to expand to full view)