from TF Metals Report:
A very nice start to the week today. The after hours action on Friday had left me quite nervous but my concerns weren’t justified…so far. Let’s see what the rest of the week brings.
But so far, so good, particularly in gold which broke down on the hourly chart back on Friday, only to regain and rally today. This is particularly encouraging given that:
- The engulfing candle on the daily from Friday should have emboldened the spec shorts.
- Today is the first trading day of the month.
That gold was able to turn around and rally today…strongly…is very encouraging. Now, before we get too excited, there’s still a long ways to go before Friday so you must expect some continue volatility. However, gold had every reason to extend lower today and it didn’t. In fact, the opposite occurred. This must be considered a very positive sign for the days and weeks ahead.
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