Gold is probably building a bearish flag. The target of the ABC corrective move would be around 1.050USD$ – 1.075 USD$. Nothing is written in stone but the chart certainly suggests this to be a high odds scenario. From a psychological point of view I very much like this scenario as it would hurt lots of traders. Gold would correct more than gold bulls would like. It would also not go all the way down to 1.000 therefore not offering the ‘easy’ entry many traders are probably waiting for. Let’s see what happens.
Up-to-date Gold Chart on my public list.
More thoughts on the markets:
- Sugar: SGG – Sugar ETN is breaking out. Looking good.
- Small Cap Silver Stocks: Mixed picture but some are starting to break out and look good. Chart
- Natural Gas: Good follow through with QEC.TO – Questerre Energy. I still would like to see more volume coming into the stock. Looks like the first pullback will be a good buy.
- Rare Earth: AVL.TO – Avalon Rare Metals bouncing off support. Showing much more strength than I would have expected. The rare earth stocks are not moving up in unison though. Makes the AVL.TO move look somewhat suspicious. Time will tell. Technically speaking QUC.V – Quest Uranium looks like it might develop into the strongest one in the rare earth stocks group. The jury is still out. QUC.V showing its hand will help determine where the sector as a whole is headed to.