After an already impressive few months, gold
doesn't look like it is ready to have a more meaningful pullback just yet. This morning a large pin bar
formed as price broke below horizontal and trend line
support and then immediately popped back up. In candlestick
analysis, these are fake-outs that we look for to fuel moves in the future. As price broke below support levels, bearish
market participants shorted, just before price was pulled back above support. These shorts are now stuck in losing positions and will get squeezed out if price continues higher, which will fuel the bullish
move higher even more. This is the psychology behind those types of pin bars.
I am long gold
miners. Now it is a game of watch and wait.