GOLD- New low, a bounce, or a one day honeymoon?

GOLD is this finally the bottom?

Probably every Technician on the planet expected a bounce here in Gold. This is a significant reversal candle.

So lets lay out the issues. Gold's ability to go up while the $USD drops is not common. All the other commodities continued to give way today. Some will say as the US approaches Fed Easing, Gold will soar. Commodities in a down draft, and the US Dollar Roars HIGHER! Those are significant headwinds as people move to cash. The Red line at 157 on this chart will be a significant point of resistance. But perhaps this is the low. At least you have a place to set your stop against. If the lows we put in yesterday are used as a line in the sand, we can trade against that.

Good Trading,

Greg Schnell, CMT